FX.co ★ Palm Oil Snaps Two-Session Gains, Faces Second Weekly Decline

Malaysian palm oil futures dropped approximately 1% to fall below MYR 3,950 per tonne on Friday, pausing a two-day upward trend due to a stronger ringgit and weaker performance of rival edible oils on the Dalian and Chicago exchanges. The prices declined to their lowest levels since early June, heading for a second straight weekly drop with an approximate 2% decrease so far, driven by escalating concerns over export demand. Cargo surveyors have assessed that Malaysian palm oil shipments between December 1st and 15th decreased by 15.9% to 16.4% compared to the previous month. In addition, official figures revealed that palm oil exports in November fell 9.3% from the previous year, in contrast to the significant 24% increase witnessed in October. Moreover, Malaysia has reduced the reference price for crude palm oil for January 2026, subsequently lowering the export duty to 9.5%, a strategy that could potentially bolster shipments in upcoming months. Nevertheless, the losses were somewhat mitigated by industry data indicating a roughly 5% rise in palm oil imports by India, the largest buyer, in November from October, driven by more competitive pricing.