A worker transports a trailer loaded with harvested oil palm bunches to a commodity buying centre in Pontian, Malaysia | Photo Credit: REUTERS/HASNOOR HUSSAIN

Malaysian palm oil futures slipped more ​than 2% on Friday and were on track for a weekly ‌loss, as expectations of higher output and ​weak exports fuelled concerns over rising inventories.

The benchmark ⁠palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 98 ringgit, or 2.05%, to 4,674 ringgit ($1,146.99) a ‌metric tonne by the midday break.

The contract has fallen 3.1% so far this week after rising 1.74% ‌in the previous week.

Crude palm oil futures ‌remained ⁠bearish despite India's import duty cuts on edible ⁠vegetable oils, said Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group.

Higher-than-expected palm oil production and weak exports have raised concerns that ​Malaysian stocks could exceed ‌3.1 million tons by the end of September, Bagani added.

The Indian government on Wednesday cut its basic import duty on crude and refined edible oils, including palm ‌oil, soyoil and sunflower oil, as it seeks ​to lower prices during the peak festive season.

Palm oil prices are poised to remain under ⁠pressure as rising inventories in Malaysia and sluggish buying by India, the world's biggest importer, weigh on the market, and ‌the impact of El Niño has yet to be felt, industry officials said.

Oil prices fell slightly as markets weighed the possibility of a truce between the US and Iran against the bombing of Saudi Arabia by Houthi rebels after a week of price spikes.

Weaker crude ‌oil futures make palm a less attractive option for biodiesel feedstock.

Soyoil ​prices on the Chicago Board of Trade fell 1.02%, while the Dalian Commodity Exchange was closed ⁠for a public holiday.

Palm oil tracks the price movements of ⁠rival edible oils, as it competes for a share of the global vegetable oils market.

The ringgit, ‌palm's currency of trade, strengthened 0.22% against the dollar, making the commodity slightly more expensive for buyers holding ​foreign currencies.

Published on September 25, 2026