Malaysian palm oil futures edged lower in early trading as market participants took a cautious stance ahead of fresh export estimates that could shape near‑term pricing trends. The April benchmark contract slipped about 0.37%, with traders focusing on the upcoming Malaysia Jan. 1–20 export figures from cargo surveyors — a key demand indicator that often impacts inventory expectations. Prices were also influenced by movements in rival edible oils, while soyoil contracts in Asia rose, leaving palm oil to set the tone for the session in Malaysia.
- Import patterns in India — the world’s largest edible oil buyer — continued to shift. Estimated December palm oil imports fell to their lowest in eight months as demand softened, while soyoil and sunflower oil purchases climbed sharply.
- Indonesia’s biodiesel policy change also tempered sentiment: the country scrapped its planned B50 biodiesel blend for 2026 and will maintain the B40 mandate, a move seen as bearish for palm oil demand globally and leading to higher export levies from March 1.
- 📅 Export data releases — often trigger volatility as buyers reassess demand strength.
- 🔁 Substitution effects — movements in soyoil and sunflower oil prices can quickly shift interest among major buyers.
- 🚢 Policy impacts — biodiesel rules in Indonesia and import trends in India remain key drivers for palm oil flows.
