Crude oil rises ripple out to palm oil market
September 16, 2026
1 RM (Malaysian Ringgit) = 0.25 USD
1 USD = 0.74 GBP
*Note, exchange rates are for September 15, 2026
There has been some volatility in the Malaysian palm oil settlement price over the last two weeks, but prices are generally stronger than for the majority of 2026. By the middle of September, the average price was RM4,895/tonne (US$1224/t), which was 1.6% less than the start of the month. Between those dates, prices peaked at RM4,976/tonne (US$1244/t) on September 7, before falling to RM4,847/tonne (US$1212/t) on September 14.
The latest price is 3.9% less than the month before, 10.1% less than the year before, but 31.1% less than the all-time high in April 2022. Like then, vegetable oil prices have been supported by rising crude oil prices.
Tighter Indonesian palm supplies influence prices
Malaysian Palm oil prices are being supported by strong crude oil prices and tighter supplies of Indonesian biodiesel.
“Palm oil futures were seen trading higher today following gains in energy prices,” Anilkumar Bagani, research head at the Mumbai-based vegetable oil broker Sunvin Group reported to The Business Recorder on Tuesday, September 15.
Attacks on Saudi Arabia’s oil infrastructure have added to uncertainty about oil prices, with gains of 2% on Tuesday September 15, and oil now trading above US$100 a barrel for the first time since July. Palm oil rather than soy oil seems to be more in demand.
As well as a stronger crude oil market, Indonesia’s plan to mandate for 50% biodiesel next year is influencing the market too. Meanwhile, El Niño is expected to reduce production across the Pacific region.
Malaysian palm oil production up in August, but exports down
Malaysia’s palm oil production was at another high for 2026 at 1.818 million tonnes in August, 1.4% more than July, which in turn was the highest figure for the year, figures from the Malaysian Palm Oil Board show.
Palm kernel production rose 2.0% in the month to 430,599 tonnes, with palm kernel oil and cake up output marginally. The increase in production contributed to a 7.5% increase in total palm oil stocks to 2.824 million tonnes, with a 0.6% drop in palm kernel oil stocks and 4.3% increase in palm kernel cake stocks.
Palm oil exports were down 7.5% on July at 1.295 million tonnes, but palm kernel oil exports jumped 37.2% to 112 8790 tonnes, with a 6.5% increase in palm kernel cake exports to 216,584 tonnes. Trade in oleochemicals was down, but biodiesel exports rose 21.2%.
Estimates by cargo surveyors estimated between at 17.8% and 25.6% drop in Malaysian palm oil exports in the first half of September
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.