PALMOILMAGAZINE, Kuala Lumpur — Malaysian crude palm oil (CPO) prices weakened on Monday (29 December 2025), snapping a four-session winning streak as market sentiment turned cautious amid concerns over persistently high domestic stock levels. The pressure came despite expectations of lower production and signs of improving demand that are still seen as providing near-term support.
The benchmark palm oil contract for March 2026 delivery on the Bursa Malaysia Derivatives Exchange fell RM 17 per metric ton, or 0.42%, to RM 4,072 per metric ton at the midday break. The decline followed renewed market attention on inventory data, which traders view as remaining relatively elevated.
According to Reuters, market participants are now awaiting the release of December supply and demand data from the Malaysian Palm Oil Board (MPOB), scheduled for 12 January. The report is expected to offer clearer direction for price movements in the weeks ahead.
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On the export front, cargo surveyors reported that Malaysia’s palm oil product shipments during the 1–25 December period rose by around 1.6% to 3% from the previous month, pointing to an improvement in global demand toward year-end.
Meanwhile, movements in competing vegetable oil markets also influenced palm oil prices. On the Dalian exchange, the most-active soyoil contract slipped 0.15%, while its palm oil contract declined 0.42%. Soyoil prices on the Chicago Board of Trade (CBOT) edged down 0.04%. Palm oil often tracks broader vegetable oil trends due to intense competition in the global market.
From a technical perspective, Reuters analyst Wang Tao noted that palm oil prices could still advance toward RM 4,123 per metric ton after breaking above resistance at RM 4,078 per ton. However, traders remain cautious, closely monitoring stock developments and upcoming official data as key determinants of the market’s next move. (P2)
