16.02.202605:49:30UTC+00Palm Oil Below MYR 4,050 Ahead of Lunar Holiday

Malaysian palm oil futures hovered just below MYR 4,050 per tonne on Monday, erasing modest gains from the previous session as a stronger ringgit and weaker exports weighed on sentiment. Cargo surveyors estimated that Malaysian palm oil shipments for February 1–15 declined by between 11.2% and 14.9% month-on-month, deepening concerns about near-term demand.

Prices remained near a four-week low, with trading activity muted ahead of the Lunar New Year break. Malaysian markets will be closed on Tuesday and reopen on Thursday. The Dalian market is also shut for the holidays until next week, while the Chicago exchange is closed for a public holiday, further curtailing external guidance for prices.

Even so, some supportive factors have emerged. India, the world’s largest palm oil importer, raised its purchases by 51% month-on-month in January, reaching a four-month high after a steep decline in December. At the same time, monthly data from the industry regulator showed that domestic inventories fell 7.7%, while production dropped 13.8% in January, pointing to tighter supplies that could help limit further downside in prices.