Palm Oil Prices Slip on Weaker Demand and Ample Supply

Palm oil prices have retreated from their recent highs due to weak demand and ample supply. Malaysian palm oil futures are trading below MYR 4,950 per tonne after a rally that had been underway.

The market is being weighed down by weaker edible oils on the Dalian and Chicago exchanges, which has added pressure to exports. According to cargo surveyors, Malaysian palm oil shipments fell between 6.5%, 14.9% in August compared to the previous month.

A key concern is the ample supply of palm oil, with inventories rising to a five-month high in July. Meanwhile, EU palm oil imports for the 2026/27 season have plummeted by 21% year-on-year since July.