Malaysian Palm Oil Extends Slide as Rising Stocks Weigh on Demand

BURSA MALAYSIA DERIVATIVES EXCHANGE, 4 OCTOBER 2026 —

Malaysian palm‑oil futures fell for a fourth straight session on Wednesday, extending a monthly decline that marks the first four‑month slide in the commodity since early this year.

The benchmark contract for December delivery on the Bursa Malaysia Derivatives Exchange dropped 12 ringgit, or 0.26 percent, to 4,612 ringgit (US$1,132.06) a metric ton, posting its lowest close since 21 July.

The slump capped a weak September in which the benchmark fell 5.76 percent, underscoring growing market anxiety over rising inventories. Traders are awaiting the Malaysian Palm Oil Board’s September‑end stock figures, due on 12 October, to gauge whether stock levels are indeed swelling and to reassess the balance between production, exports and domestic consumption.

“Crude palm oil futures market is still in bear mode. According to several media reports, market players are anticipating high‑end stocks,” market participants said, highlighting the view that elevated inventories could keep price recovery at bay. The forthcoming inventory data is expected to provide direction on whether the supply‑demand equation remains tilted toward excess supply.

Competing vegetable oils posted firmer gains, adding pressure to palm oil. In China’s Dalian market, the most‑active soyoil contract rose 1.32 percent, while its palm‑oil contract inched up only 0.1 percent. On the Chicago Board of Trade, soyoil prices edged 0.06 percent higher. Because edible oils vie for the same global market share, stronger performance in soy‑ and sunflower‑oil benchmarks often drags palm‑oil prices lower.

India’s import outlook further shades the demand picture. Media reports indicate that India’s sunflower‑oil imports are set to climb 30 percent in the 2026/27 marketing year to 3.5 million metric tons, a surge driven by lower import duties that have cut prices and boosted demand. By contrast, palm‑oil imports to India are expected to remain steady, suggesting that the country’s expanding appetite for cheaper sunflower oil could siphon demand away from palm oil.

Export data for September also point to weakening overseas demand for Malaysian palm‑oil products. Reports say shipments fell between 17.1 percent and 28.8 percent compared with August, signalling a slowdown in international buying activity. The drop in export volumes, combined with the prospect of high domestic stocks, reinforces the bearish tone in the market.

With inventories likely to stay elevated, the confluence of softer Malaysian exports and stronger availability of rival vegetable oils could keep palm‑oil prices under pressure in the near term. Traders will watch the 12 October inventory release for confirmation of the supply‑demand balance and to adjust positioning accordingly.

The immediate impact on the palm‑oil procurement environment is a softer market, where buyers may postpone purchases or negotiate lower offers amid abundant supply. For chemical producers that track palm‑oil prices, the effect is indirect.

Lower vegetable‑oil costs may ease feedstock pressure on oleochemical products such as fatty acids, fatty alcohols and glycerine, potentially generating downward price pressure if the weakness in palm‑oil prices persists. The extent of this impact will hinge on inventory levels, crude palm‑oil movements, competing vegetable‑oil prices, production costs and downstream demand.

Related: Malaysian Palm Oil Board · Bursa Malaysia Derivatives Exchange