Palm ends lower after views and forecasts from the Price Outlook Conference
- Benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 35 ringgit, or 0.85%
JAKARTA: Malaysian palm oil futures erased earlier gains and closed lower on Wednesday, their second consecutive session of losses, after several views and forecasts were shared at the Price Outlook Conference (POC) in Kuala Lumpur.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 35 ringgit, or 0.85%, to 4,060 ringgit ($1,037.83) a metric ton at the close.
Dalian’s most-active soyoil contract was down 0.05%, while its palm oil contract fell 0.69%. Soyoil prices on the Chicago Board of Trade lost 0.54%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Malaysian palm oil futures are expected to trade range bound between 3,800 and 4,300 ringgit ($968-$1,096) per metric ton from now until July 2026, barring any new weather-related factors, with supplies ample and demand weak, industry analyst Dorab Mistry said at the POC.
Indonesian crude palm oil output is expected to grow by 2-3% this year, after rising 8% to 51.98 million metric tons in 2025, the Indonesian palm oil producers association GAPKI said.
Palm oil purchases from top buyers India and China are expected to pick up from January to April this year, with stocks set to decline over the period, analyst Thomas Mielke said at the POC.
Palm oil output is expected to grow at a slower pace in 2026, with production rising by 600,000 tons in Indonesia and falling to 19.7 million tons in Malaysia, Julian McGill, managing director of advisory firm Glenauk Economics, said.
Data showed that Malaysia’s palm oil stocks in January fell 7.72%, the first time in 11 months, driven by a surge in exports despite production sliding to a 10-month low.
According to independent inspection company AmSpec Agri, exports of Malaysian palm oil products between February 1 and 10 fell 14.3% undefined compared to the January 1 and 10 period, while cargo surveyor Intertek Testing Services reported a 10.5% decline.