Palm Oil Futures Steady Near One-Week Low as India Demand Softens
Jakarta Globe (07/10/2025) - Jakarta. Palm oil prices in Malaysia stayed near a one-week low on Tuesday, with benchmark futures rising slightly to 4,444 ringgit ($940) per ton, up 0.18 percent from the previous day. The small gain came as traders balanced weaker global demand and economic uncertainty against signs of stronger exports.
According to Trading Economics, over the past month, palm oil prices have slipped 0.98 percent, though they remain 4.05 percent higher year-on-year, based on contracts for difference (CFDs) that track the commodity’s benchmark market. Prices are still well below their March 2022 record of 7,268 ringgit, when supply shocks from the Russia-Ukraine war sent vegetable oil markets soaring.
The latest downturn was driven by softer soybean oil prices on the Chicago Board of Trade, which often influence sentiment in the broader edible oil complex. Trading volumes were also muted as China’s Dalian Commodity Exchange remained closed for the Golden Week holiday, limiting participation from one of the world’s largest buyers.
Adding to the bearish tone, India’s palm oil imports dropped 15.9 percent in September to 833,000 tons, the lowest level since May, as refineries scaled back purchases ahead of Diwali. Traders expect shipments to ease further to around 600,000 tons in October, with festive demand peaking mid-month.
Meanwhile, concerns over the US government shutdown, now entering its second week, injected further caution into global commodity markets. White House economic adviser Kevin Hassett warned that prolonged political gridlock could trigger layoffs, denting broader demand sentiment.
Still, losses were contained as Malaysia’s palm oil exports climbed 7.3–9.6 percent in September from the previous month, according to cargo surveyors. Reuters estimates also showed national inventories fell 2.5 percent to 2.15 million tons, suggesting improving fundamentals may help stabilize prices once trading resumes in full after the holiday break.
In the physical markets, European crude palm oil CIF Rotterdam prices for Malaysian and Indonesian origins rose by $11.50 to $1,097.00 per ton on Oct. 3, from $1,085.50 on Oct. 2.
On the Malaysia Derivatives Exchange (MDEX), CPO futures slipped slightly by 11 ringgit to 4,400 ringgit per ton on Oct. 3, down from 4,411 ringgit a day earlier.
At the Indonesia Commodity & Derivatives Exchange (ICDX), CPO prices increased by 110 rupiah to Rp 14,755 per kilogram, compared with Rp 14,645 on Oct. 2. The Jakarta Futures Exchange (JFX) also saw refined, bleached, and deodorized (RBD) olein rise 40 rupiah to Rp 17,285 per kilogram, from Rp 17,245 previously.
Meanwhile, KPB Nusantara’s delivered CPO for Dumai, Belawan, and Kuala Tanjung held steady at Rp 14,750 per kilogram on both Oct. 2 and Oct. 3, reflecting stable domestic demand.