Malaysia’s Palm Oil Exports Slip in Early February

Malaysia, the world’s second-largest palm oil producer, reported a significant decline in exports during the first half of February. Industry data shows shipments dropped to 587,431 metric tons between February 1–16, compared with 690,642 metric tons in the January 1–15 period.

Key Highlights

• Export Decline: A reduction of more than 100,000 metric tons compared to the previous reporting period.
• Demand Trends: Softer buying interest from major importers, particularly India and China.
• Market Impact: Lower export volumes may influence benchmark crude palm oil (CPO) prices on Bursa Malaysia.
• Competitive Pressures: Rising availability of alternative oils such as soybean and sunflower is affecting trade flows.
• Investor Focus: Currency movements and policy signals remain critical for Malaysia’s export competitiveness.

This slowdown underscores the volatility in the edible oil market, where global demand, weather conditions, and geopolitical factors continue to shape trade dynamics. Analysts expect close monitoring of India and China’s import patterns to determine the trajectory of palm oil prices in the coming weeks.

Sources: Reuters, Malaysian Palm Oil Board (MPOB).