Malaysian palm oil futures extended their recent decline, trading below MYR 4,750 per tonne and approaching a six-week low. The market was weighed down by weakness in other edible oils on the Dalian and Chicago exchanges, as well as a further drop in crude oil prices amid hopes for a diplomatic resolution to the U.S.-Iran conflict at the UN. Export indicators were also soft: cargo surveyors estimated that shipments fell by 12.8%–24.7% month-on-month during September 1–20, while EU imports for the 2026/27 season slumped 26% to 0.56 million tonnes.
Even so, the downside was partly limited by stronger demand prospects in top consumer India. The country’s palm oil imports in August rose 7% from July to 782,761 tonnes, the highest level since February, as refiners replenished inventories ahead of upcoming festivals. On the supply side, Indonesia, the world’s largest palm oil producer, is expected to experience a shorter-than-usual wet season starting in November, which could affect crop conditions. Meanwhile, Malaysia raised its October CPO reference price but left the export duty unchanged at 10%.
