2026.08.2603:58:01UTC+00Palm Oil Retreats to One-Week Low

Malaysian palm oil futures extended their decline, slipping below MYR 4,900 per tonne and hitting a one‑week low as traders returned from the holiday break. Market sentiment came under pressure from a stronger ringgit and weaker soyoil prices on the Chicago Board of Trade, while crude oil retreated on renewed optimism that the Strait of Hormuz could reopen.

Demand worries further weighed on prices. Cargo surveyor Intertek Testing Services reported that exports of palm oil products for August 1–25 fell 20% compared with the same period in July. Ample supply added to the bearish tone, with Malaysian palm oil inventories rising to a five‑month high in July. In addition, exports from top producer Indonesia dropped 9.2% year-on-year in June, according to the industry group GAPKI.

Losses were partially limited by stronger soyoil prices on the Dalian exchange. Concerns that a developing El Niño could intensify dryness and curb output in Indonesia and Malaysia also lent support, as did Indonesia’s plan to fully implement its B50 biodiesel mandate from October 1.