Malaysian palm oil futures slipped around 1% to around MYR 4,000 per tonne on Friday, the first trading day of 2026, pressured by weaker exports at year-end. Cargo surveyors noted December shipments fell 5.2%–5.8% from November, reinforcing demand concerns. Also, caution mounted ahead of December production data, after November output fell 5.3% mom to 1.94 million tonnes. Meantime, top grower Indonesia set its January crude palm oil reference price at USD 915.64 per tonne, down from USD 926.14, indicating softer pricing. Still, losses were capped by signs of recovering demand from India, the world’s largest palm oil buyer, as imports rose modestly in November with refiners capitalizing on lower prices. Malaysia continued to diversify export markets toward Africa and the Middle East amid EU trade challenges. In 2025, palm oil prices plunged by nearly 9%, after the prior year’s solid gains, dragged by weaker crude, weather disruptions, and tighter sustainability rules in major markets.
