Malaysian palm oil futures extended their decline, trading below MYR 4,550 per tonne as weaker Chicago soyoil prices dampened market sentiment. Trading was also cautious ahead of the Malaysian Palm Oil Board’s monthly report, with inventories widely expected to reach a peak this month. Demand remained subdued, adding to the downside pressure, after cargo surveyors estimated that September palm oil exports fell by 17.1% to 28.8% month-on-month. In the European Union, palm oil imports for the 2026/27 season, which began in July, dropped 18% year-on-year to 0.71 million tonnes.
In Indonesia, the forestry task force transferred nearly 260,000 hectares of reclaimed land to the Forestry Ministry, with more than half to be managed by Agrinas Palma Nusantara, a move that could bolster longer-term supply. Even so, a weaker ringgit and firmer crude oil prices—supported by supply constraints in the Middle East—helped contain further losses by enhancing the attractiveness of palm oil as a biodiesel feedstock. Meanwhile, China’s Dalian commodity exchanges are set to resume trading on Thursday.
