PALMOILMAGAZINE, KUALA LUMPUR — Crude palm oil (CPO) prices on the Bursa Malaysia Derivatives Exchange extended their decline on Tuesday (February 10, 2026), following the release of the latest data from the Malaysian Palm Oil Board (MPOB) and ongoing pressure from weaker rival vegetable oil prices in global markets.
The benchmark April 2026 CPO contract fell by RM63 per ton, or 1.51%, to close at RM4,097 per ton. The correction reflected the market’s response to a mix of domestic fundamentals and external sentiment, as reported by Reuters.
According to MPOB, Malaysia’s palm oil inventories in January 2026 declined by 7.72% month-on-month, marking the first drop in 11 months. The reduction was largely driven by stronger export shipments, even as production fell to its lowest level in 10 months during the same period.
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However, export momentum began to soften in early February. Data from independent inspection firm AmSpec Agri Malaysia showed that palm oil product exports for February 1–10 fell by 14.3% to 399,995 tons, compared to 466,457 tons in the corresponding period of the previous month. The slowdown has raised concerns over short-term demand prospects.
Externally, CPO prices were further weighed down by movements in competing vegetable oils. On the Dalian Commodity Exchange, the most active soybean oil contract slipped 0.3%, while palm oil futures declined 0.69%. Meanwhile, soybean oil prices on the Chicago Board of Trade dropped 0.64%.
These developments underscore the strong linkage between CPO and other vegetable oils, reflecting intense competition for global market share amid fluctuating demand and currency movements.
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Beyond near-term pressures, Malaysia’s palm oil industry also faces structural challenges. The area of aging oil palm plantations is projected to expand to around 2 million hectares by 2027, up from approximately 1.7 million hectares currently. Without an accelerated replanting program, the rising share of mature trees could weigh on productivity and national output.
With global market headwinds, slowing early-month exports, and long-term productivity concerns, CPO prices are expected to remain highly sensitive to demand indicators and broader developments in the global vegetable oil market in the near term. (P2)
