Palm oil exports disappoint, and the start of 2026 is a weak one for palm oil. Production will be the focus.
Malaysian palm futures opened lower Friday, their first trading session in 2026. Traders digested sluggish data from cargo surveyors and awaited the December production figures to provide further price guidance.
By midday, the benchmark March palm oil contract on Bursa Derivatives Exchange had fallen 1.19% to 4002 Ringgit ($986.93), a metric ton. Malaysian palm product exports in 'December' fell between 5.2% to 5.8% on a month-to-month basis, according Intertek Testing Services and AmSpec Agri Malaysia.
Anilkumar Bagani is the commodity research director at Mumbai-based Sunvin Group. He said that the full-month Malaysian Palm Oil exports have?declined? by more than?5%. This was in contrast to market expectations for a solid increase from the low base level of November.
Bagani said that palm futures fell as well following the?saleoff in Chicago soyoil on Wednesday. He added that he was waiting for estimates of full-month Malaysian Palm?oil?production. Prices dropped nearly 9% by 2025 due to?geopolitical uncertainty and tariff concerns. Indonesia's Trade Ministry has announced that the crude palm oil price reference for January is $915.64 per tonne, down from $926.14 in December.
Palm oil could fall from 4,044 Ringgit per ton to a range of 3,964 to 4,008 Ringgit.
(source: Reuters)
