Palm Oil Extends Rally Driven by Robust Malaysian Shipments
Palm oil continued to rise for a fourth consecutive session because of increased demand for Malaysian goods, reaching its highest level in t
Quick overview
- Palm oil prices have risen for four consecutive sessions, reaching a two-week high due to increased demand for Malaysian goods.
- Malaysia's palm oil exports increased by 1.6% month over month in December, with India being the largest buyer, importing 279,550 tons.
- The rise in exports is attributed to heightened demand during the festival season, with expectations for further price increases in February 2026.
- However, a strengthening Malaysian ringgit may limit price gains by making palm oil less attractive to foreign buyers.
Palm oil continued to rise for a fourth consecutive session because of increased demand for Malaysian goods, reaching its highest level in two weeks.
Intertek Testing Services reports that during the first 25 days of December, exports from Malaysia, the second-largest grower, increased by 1.6% month over month.
India was the largest buyer, a 66 percent increase over the same period last month, with 279,550 tons imported. “As the festival season’s demand catches up, exports are bound to rise now,” stated Gnanasekar Thiagarajan, Kaleesuwari Intercontinental’s head of trading and hedging strategies.
Prices are anticipated to rise in February 2026 due to demand before the Lunar New Year and Ramadan. He did, however, add that a stronger ringgit might limit gains. After strengthening for a third day, the Malaysian ringgit is poised to reach a four-and-a-half-year high, making the tropical commodity less appealing to foreign buyers.
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