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Malaysian Palm Oil Prices Drop Amid Rising Inventories

10/13/2025

24 2 Full Breakdown

Summary

Story summary

Malaysian palm oil futures fell 1.72% to 4,466 ringgit per metric ton on October 13, 2025, marking a second consecutive session of losses.
The decline follows rising inventories and cautious sentiment, with end-September inventories up 7.2% to 2.36 million tonnes.
Despite nearly 20% early-October export growth, the government forecasts crude palm oil prices will average 3,900 to 4,100 ringgit in 2026 due to higher global supply.

History

Historical Context

In 2015, Malaysia's palm oil production dropped by 10% due to El Niño, with exports falling to 16.5 million tonnes. The Malaysian Palm Oil Board noted that small farmers significantly contribute to this sector. Ongoing challenges, including rising inventories and environmental concerns, echo past crises, prompting potential shifts in agricultural policies as Malaysia adapts to fluctuating global demand.

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Story summary

Malaysian palm oil futures fell 1.72% to 4,466 ringgit per metric ton on October 13, 2025, marking a second consecutive session of losses.
The decline follows rising inventories and cautious sentiment, with end-September inventories up 7.2% to 2.36 million tonnes.
Despite nearly 20% early-October export growth, the government forecasts crude palm oil prices will average 3,900 to 4,100 ringgit in 2026 due to higher global supply.

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