Palm Oil Retreats from Two-Week Peak

Malaysian palm oil futures declined to below MYR 4,080 on Monday, retreating from four consecutive sessions of gains as traders took profits after reaching a two-week high last week. The softer trend in edible oils on the Dalian exchange also affected market sentiment in the final week of 2025, positioning the futures to conclude the year with an approximate 8.5% decrease, thereby reversing the strong gain from the previous year. Nevertheless, the decrease in value was mitigated by a weaker ringgit and stronger export performance. Cargo surveyors highlighted an increase in shipments of palm oil products from December 1 to 25, rising by 1.6% to 3% compared to the previous month. Positive demand indicators provided additional support: India's November imports increased by around 5% month-on-month due to more favorable pricing, whereas China, a major consumer, committed to implementing new fiscal measures aimed at enhancing consumption, employment, and household income in the coming year. In a separate development, Indonesia, the largest global producer, resolved significant issues in a tariff agreement with the United States. The finalized deal, anticipated by late January, might include exemptions for certain products, such as palm oil.