12.02.202604:02:38UTC+00Palm Oil Falls for 3rd Session to Near 4-Week Low

Malaysian palm oil futures fell for a third straight session on Thursday, trading below MYR 4,050 per tonne and nearing a four-week low. Sentiment was weighed down by weakness in edible oils on the Dalian exchange and a stronger ringgit. Analysts also highlighted downside risks from Indonesia— the world’s largest palm oil producer—halting the expansion of its biodiesel mandate, alongside indications of higher production in the coming months.

Additional pressure came from export data, with cargo surveyors reporting that Malaysian palm oil shipments for February 1–10 dropped by 10.5%–14.3% from the same period in the previous month. Demand from key consumer China is expected to soften as buyers shift toward cheaper soybean and canola oils.

However, losses were partially limited by Malaysian Palm Oil Board data showing that inventories fell 7.7% in January as production declined 13.8% ahead of Ramadan and Eid. In India, the largest buyer, palm oil imports jumped 51% month-on-month to a four-month high, recovering from a sharp decline in December as refiners moved to rebuild stocks.