Palm oil prices follow crude oil down
1 RM (Malaysian Ringgit) = 0.25 USD*
1 USD = 0.75 GBP
*Note, exchange rates are for April 15, 2026
The Malaysian palm oil settlement price has been following crude oil prices, which in turn are affected by the volatile situation in the Middle East. Prices reached RM4,811/tonne (US$1,203) on the 7th April, which was 19% more than the price before the conflict began at the end of February.
By the middle of April, the price had fallen to RM4,475 (US$1,119) following the announcement of a ceasefire and the beginning of talks between the US and Iran. The latest price was 7.3% lower than at the end of March, 1.4% lower than mid-March and 10.6% higher than the year before. However, prices have not reached the highs seen in the wake of Russia’s invasion of Ukraine when they reached RM7,104/tonne ($1,776).
Analysis: Reduced production also supports prices
While the Malaysian palm oil market has been significantly influenced by the ongoing conflict in the Middle East, reduced stocks and higher exports in March supported values during the first-half of April.
Malaysian palm oil stocks were at a seven-month low in March after falling for a third month in a row. An expectation that India, the world’s largest buyer of palm oil, would be replenishing its stocks also gave prices support. However, Malaysian palm oil exports were down by at least 30% in the first 10 days of April, according to surveys by shipping agencies.
Palm oil stocks are still higher than normal for the time of the year
The increase in March Malaysian palm oil production was the first time in five months that output had risen. However, it was the lowest March production for three years and stocks were still higher than normal for the time of year.
"Despite the hefty reduction in March, Malaysian palm oil inventories remain well above typical levels for this time of year," Anilkumar Bagani, research head at vegetable oil broker Sunvin Group, was quoted as saying in the Malaysian Star newspaper.
"Export performance will need to be repeated in April to support the market, as production so far this month is still seen as elevated, while exports are sharply down in the first 10 days."
Malaysian palm production and exports up in March
Malaysia’s March palm oil production was up 7.2% on February’s output at 1.377 million tonnes. However, when calculated on a per-day basis, production was 3.2% lower at 44,414 tonnes a day, according to the Malaysian Palm Oil Board. Palm kernel production rose 7.0% for the month at 325,320 tonnes, which represented a 3.3% drop in daily output. Crude palm kernel oil production rose 11.3% to 162,127 tonnes, with palm kernel cake up 11.5% to 176,406 tonnes.
Crude palm oil stocks were down 14.9% to a seven-month low of 1.256 million tonnes, with processed palm oil stocks 17.6% lower at 1.011 million tonnes. Palm kernel sticks were also down.
It was a strong month for palm oil exports, which were 40.7% higher at 1.551 million tonnes. Palm kernel oil shipments rose 71.9% to 78,033 tonnes, but palm kernel cake and biodiesel exports were lower.
Disclaimer: The information in this document has been obtained from or based upon sources believed to be reliable and accurate at the time of writing. The document should be for information purposes only and is not guaranteed to be accurate or complete.