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Palm Oil Prices Slide on High Stock Concerns, Short-Term Rally at Risk



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Palm Oil Prices Slide on High Stock Concerns, Short-Term Rally at Risk

InfoSAWIT, KUALA LUMPUR — Malaysian crude palm oil (CPO) prices declined on Monday (December 29, 2025), snapping a four-session rally as concerns over high domestic inventories weighed on the market.

The benchmark March 2026 contract on the Bursa Malaysia Derivatives Exchange fell RM 17, or 0.42%, to RM 4,072 per metric ton at midday. The decline came despite expectations of slower production and improved demand in the weeks ahead.

Market participants are awaiting December supply and demand data from the Malaysian Palm Oil Board, due on January 12, which is expected to provide clearer direction for prices.

Cargo surveyors estimated Malaysian palm oil exports for December 1–25 rose between 1.6% and 3% month-on-month, signaling firmer global demand toward year-end.

Technically, Reuters analyst Wang Tao said prices could rebound toward RM 4,123 per metric ton after breaking resistance at RM 4,078, though stock levels remain a key factor to watch. (T2)

 

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