Malaysian palm oil futures continued their downturn for a second consecutive session, slipping below MYR 4,200 per tonne on Tuesday as broader commodity sentiment weakened and key market drivers signaled demand uncertainty. Trading reopened after a holiday with palm oil futures hovering near their lowest levels in a week, pressured by weakness in rival edible oils on the Dalian Commodity Exchange and a firmer Malaysian ringgit, which makes palm oil more expensive for overseas buyers. Market confidence was further weighed down by soft official PMI data from China, one of the world’s largest vegetable oil consumers, raising concerns over near‑term demand prospects for palm oil and other edible oils.
However, the decline was partly cushioned by strong import data from India, the world’s largest buyer of edible oils. Dealership estimates indicate that India’s palm oil imports surged by 51 % in January to a four‑month high, as the tropical oil’s discount to competing soyoil encouraged refiners to increase purchases.
Meanwhile, Indonesia — the world’s largest palm oil producer — reported strong export figures, with total crude and refined palm oil shipments reaching 23.61 million metric tons in 2025, up about 9.1 % year‑on‑year according to official statistics. Malaysian palm oil product exports also rose 17.9 % in January to 1.46 million metric tons over the previous month, per cargo surveyor data.
Traders are watching whether the modest support from export growth and stronger Indian demand can offset the downward pressure from global edible oil weakness and currency factors. A sustained recovery may hinge on improved demand from major consuming countries and stability in related commodity markets.
