Malaysian Palm Oil Hits Mid-July Low on Weak Exports, Supply Pressure

Malaysian palm oil futures extended recent declines, hovering near MYR 4,600 per tonne to notch their lowest level since mid-July, pressured by weaker soyoil prices and sluggish exports. Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia reported that Malaysian palm oil product exports fell 17.1%-28.8% month-on-month in September, while inventories reached an eight-month high in August and were expected to exceed 3 million tonnes in September. Simultaneously, palm oil production in Malaysia surged 20.84% in the first 25 days of September, adding to supply pressure. Crude oil prices also eased amid signs of recovering Middle East flows, while China’s markets were closed for the Golden Week holiday. Still, a weaker ringgit limited losses. Meanwhile, palm oil imports by top buyer India are expected to hold steady in the 2026/27 marketing year after an import-duty cut, while lower vegetable-oil duties ahead of the festive season could support near-term demand.