This week’s palm oil market report.
- A system outage at the Globex electronic trading platform temporarily halted Malaysian palm oil futures trading, notably impacting the February 2026 contract which briefly surged to RM4,112 per metric ton before trading was suspended. Over the past week, the contract rose by 1.1 percent but remains down 2.78 percent for the month, reflecting ongoing market volatility.
- Production concerns persist due to flooding in Malaysia and Indonesia, countered by growing demand from India. Malaysia’s palm oil output rose modestly by 3.2 percent in early November. However, inventory levels hit a six-year high in October at 2.46 million tons, triggering price fluctuations and a cautious recovery. Export figures have been inconsistent, with recent declines compounded by a strong currency and competitive global market pressures.
- Indonesia remains a dominant exporter, shipping 2.2 million tons of palm oil in September, including refined products. Despite adverse weather, Indonesia continues to significantly influence global pricing and supply trends.
- International partnerships and policy initiatives are also reshaping the industry. Malaysia is encouraging long-term palm oil agreements with China amid falling exports, seeking to counter competition from soybean oil. Cameroon is reviving its palm sector through the establishment of two new industrial units funded by CFA51.7 billion in loans, aiming to restore the Cameroon Development Corporation’s operations following political disruptions.
- Ghana plans to invest $500 million between 2026 and 2032 under its National Integrated Palm Oil Development Policy to reduce import dependence, enhance domestic processing capacity, support smallholders, and combat illicit imports. The initiative is backed by international financial cooperation and aims to promote agricultural sustainability and employment.
- India, as the world’s largest palm oil importer, is expected to increase imports by nearly 20 percent. This move, driven by price competitiveness, will likely affect inventory levels in producing nations and further influence global supply-demand balances.
