Palm oil starts 2026 on weak note as export data disappoints; production in focus

JAKARTA: Malaysian palm oil futures fell and booked a weekly drop on Friday, their first trading session of 2026, as traders digested sluggish export data from cargo surveyors and awaited December production figures for further price guidance.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange dropped 1.48% to 3,990 ringgit ($984.70) a metric ton at closing. It lost 2.42% for the week.

Malaysian palm oil product exports for December declined between 5.2% and 5.8% month-on-month, according to cargo surveyor Intertek Testing Services and inspection company AmSpec Agri Malaysia in their reports released on Wednesday.

“The full-month Malaysian palm oil export has declined by more than 5% in contrast to the market expectations of a sound increase over the low base of November,” said Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group.

Palm futures also declined following a selloff in Chicago soyoil futures on Wednesday, Bagani added, while waiting for full-month Malaysian palm oil production estimates.

Prices fell nearly 9% in 2025 on geopolitical uncertainties and tariff concerns.

Indonesia has set its crude palm oil reference price at $915.64 per ton for January, down from December’s $926.14 per ton, according to a Trade Ministry decree.

Palm oil may break support at 4,044 ringgit per ton, and fall into the 3,964 ringgit to 4,008 ringgit range.