Palm Oil Futures in Malaysia Stable Amid Expectations of Inventory Decline
Palm oil futures in Malaysia remained stable on Wednesday, trading within the range of 4215–4222 Malaysian ringgits per ton after two sessions of slight declines. The main factor supporting prices was the forecast for a reduction in inventories and an increase in export demand in the near term.
This is reported by AgroReview
Market Expectations and Price Dynamics
According to David Nga, a trader at Iceberg X in Kuala Lumpur, palm oil prices closed slightly higher due to expectations of inventory declines. He also noted that investors are hopeful for an increase in export demand in the coming weeks. Prices are expected to hold above 4200 ringgits per ton, with resistance at 4350 ringgits. The April contract on Bursa Malaysia ended trading up by 7 ringgits, reaching 4222 ringgits ($1,073.75) per ton.
Price dynamics remained subdued due to the strengthening of the ringgit and the parallel rise in soybean oil prices in Chicago, which offset support from rising oil prices in Dalian.
Traders are exercising caution ahead of the release of the Malaysian Palm Oil Council’s monthly data, which is set to be published on February 10. This data is expected to determine the future direction of the market.
The Malaysian Palm Oil Council forecasts that prices will fluctuate between 4000–4300 ringgits in February, indicating a balanced market situation.
Global Demand and Export Trends
The increase in demand for palm oil is supported by active exports. Analysts estimate that shipment volumes in January increased by 14.9–17.9% compared to the previous month. In India, palm oil imports rose by 51%, reaching a four-month high, as significant price advantages over soybean oil stimulated purchases by processing plants.
Indonesia, the world’s largest producer of palm oil, recorded a 102.23% increase in exports compared to December. The total shipment volume in 2025 increased by 9.1% year-on-year, amounting to 23.61 million tons.
At the Dalian Commodity Exchange, the most active soybean oil contract rose by 0.42%, and palm oil prices also increased. In Chicago, soybean oil prices changed little, rising only by 0.09%.
Palm oil continues to compete with soybean and other edible oils for market share in the global vegetable oil market.
“According to a Reuters survey published on Wednesday, palm oil stocks in Malaysia are expected to break a ten-month upward trend in January, as exports surged during the seasonal slowdown in production.”
According to estimates from AmSpec Agri Malaysia and Intertek Testing Services, Malaysian palm oil exports in January could increase by 14.9–17.9% month-on-month. Five dealers confirm that palm oil imports to India in January rose by 51% to a four-month high, while the decline in the price of this product compared to soybean oil encouraged purchasing activity, as soybean oil imports fell to the lowest level in 19 months.
According to Reuters technical analyst Wang Tao, the price of palm oil may test the support level of 4201 ringgits per ton. If this level is broken downward, a decline to the range of 4115–4158 ringgits per ton may occur.