18.12.202504:00:57UTC+00Palm Oil Rises for Second Session to Above MYR 4,000

Malaysian palm oil futures saw an increase of approximately 1%, crossing the MYR 4,000 per tonne threshold on Thursday. This marks the second consecutive session of gains as investors engaged in bargain hunting after witnessing prices dip to their lowest in five and a half months earlier in the week. The market sentiment was buoyed by a weaker ringgit and strengthening Chicago soyoil, which enhanced the competitiveness of palm oil. Furthermore, demand indicators were positive, with November imports of palm oil by India's major buyer increasing by about 5% compared to October, drawn by favorable pricing. Despite this, the futures remained about 0.3% lower for the week, marking a second week of overall decline, due to ongoing concerns about export demand. Reports from cargo surveyors indicated a decline in Malaysian palm oil shipments, estimated to fall between 15.9% and 16.4% from December 1 to 15, compared to the previous month. In a related development, Malaysia has announced a reduction in the reference price for crude palm oil for January 2026, which lowers the export duty to 9.5%, as detailed in a notice on the Malaysian Palm Oil Board's website. This measure is likely to bolster exports in the approaching months.