Malaysia Palm Oil Prices Plummet Amid Soyoil Selloff

Palm oil prices took a hit on Monday in Malaysia, marking an end to their five-session winning streak. The November contract on Bursa Malaysia Derivatives dropped 0.54% by the midday break to MYR 4,991 ($1,236)/t.

The decline came after palm oil prices reached their highest level since December 2024, but a sharp drop in Chicago soyoil prices led to pressure on the market. U.S. biofuel demand expectations weakened, causing the Environmental Protection Agency to signal that it may extend the deadline for oil refiners to demonstrate compliance with biofuel blending requirements.

Chicago soyoil futures lost more than 2% on Friday and extended their decline by another 2.7% on Monday. The drop in crude oil prices also made palm oil less attractive as a biodiesel feedstock, adding to the pressure.