This episode covers the latest movements in the global palm oil market.
- Malaysia has raised its crude palm oil reference price for October to RM4,268.68 per metric ton, up from September’s RM4,053.43. Despite this increase, the export duty remains capped at 10%, consistent with the country's tiered tax framework. Notably, the European Union has formally recognized Malaysia’s Sustainable Palm Oil Certification, aligning it with new deforestation regulations and enhancing Malaysia’s credibility in environmentally sensitive markets.
- While Malaysia's exports are growing, production increases have led to stockpiles reaching a 20-month high of 2.2 million tons by August. In India, palm oil imports surged by 15.76% in August to 990,428 metric tons, the highest in over a year, driven by competitive pricing and pre-festival demand. This increase coincided with a 25.27% drop in soybean oil imports and a 28.53% rise in sunflower oil imports, reflecting India's strategy to diversify edible oil sources.
- The European Union's upcoming deforestation regulations, effective December, are set to enforce stricter legal and sustainability criteria for palm oil imports. The EU’s acknowledgment of Malaysia’s certification positions the country to benefit from the expected annual market growth of nearly 5% through early 2030.
- Globally, palm oil trade continues to be influenced by currency trends, competitive vegetable oil markets, and rising environmental scrutiny. Malaysia’s proactive certification and pricing adjustments underscore its efforts to maintain market share while meeting increasing demands for sustainable production.
