Potential easing of the Iran conflict pushes palm oil below MYR 4,500
26/03/2026 (IDN Financials), Jakarta - Malaysia’s crude palm oil (CPO) prices fell below MYR4,500 per tonne on Wednesday (25/3), weakening for a second consecutive session as the strengthening ringgit and declining vegetable oil prices in Dalian and Chicago weighed on market sentiment.
According to market data, as of 15:46 WIB, CPO futures on the Bursa Malaysia Derivatives dropped 1.19 percent to 4,483 Malaysian ringgit per tonne.
As reported by Trading Economics, crude oil prices also fell sharply due to emerging signs of a potential ceasefire in the Middle East, reducing demand support linked to biodiesel.
Market participants remain cautious ahead of the release of export estimates for the first 25 days of March, scheduled for today, with demand expected to slow following the Eid al-Fitr holiday period.
In India, the main buyer, refineries have reportedly reduced purchases of palm oil, soybean oil, and sunflower oil. They believe the price rally driven by conflict is only temporary and plan to replenish stocks once tensions ease.
India’s palm oil imports in March are estimated at around 680,000 tonnes, down from 847,689 tonnes in February.
Even so, the price decline is being limited by expectations that Indonesia, the world’s largest supplier, may raise export taxes in April and accelerate the implementation of the mandatory B50 biodiesel programme. (DK/LM)