FX.co ★ Palm Oil Retreats as Crude, Edible Oils Weaken

Malaysian palm oil futures fell about 2% to below MYR 4,500 per tonne on Tuesday, giving back the previous session’s gains that had driven prices to their highest level since mid-December 2024. The pullback was largely attributed to profit-taking after the sharp rally, with further pressure from weaker edible oil prices in Dalian and Chicago, a stronger ringgit, and a retreat in crude oil prices.

Fresh data from the Malaysian Palm Oil Board (MPOB) showed that February exports declined 22.5% month-on-month, despite restocking demand ahead of Eid al-Fitr. However, the downside in prices was partly cushioned by strong Chinese trade figures: both exports and imports beat expectations in the first two months of 2026, indicating resilient demand.

In Indonesia, the world’s largest palm oil supplier, officials are considering reviving plans for a B50 biodiesel mandate by mid-year, supported by elevated crude oil prices. Separately, MPOB data showed Malaysia’s palm oil inventories fell 3.9% in February to a four-month low of 2.70 million tons, while crude palm oil production plunged 18.6% to 1.28 million tons.