16.12.202503:33:48UTC+00Palm Oil Slides for 3rd Session Below MYR 4,000

Malaysian palm oil futures experienced a decline for the third day in a row, settling near MYR 3,980 per tonne—marking a near three-week low. This drop is primarily attributed to a stronger ringgit and weakening competitor edible oils in both the Dalian and Chicago markets. Market sentiment was further impacted by indications of reduced exports, as cargo surveyor reports suggested that Malaysian palm oil product shipments for December 1–15 decreased by between 15.9% and 16.4% compared to the previous month.

On the supply front, inventories at the end of November rose by 13% to reach 2.84 million tonnes, the highest point in six and a half years. This increase highlights the strong full-year production, poised to exceed 20 million tonnes for the first time. These negative influences were somewhat mitigated by demand from India, the largest buyer, where palm oil imports in November climbed approximately 5% from October to 632,341 metric tonnes, as refiners took advantage of the lower prices. Additionally, some support came from data released last week by the industry regulator, indicating that November's crude palm oil production decreased by 5.3% month-over-month to 1.94 million tonnes.