Malaysian palm oil settlement price slides
1 RM (Malaysian Ringgit) = 0.26 USD*
1 USD = 0.73 GBP
*Note, exchange rates are for February 16, 2026
All the gains in the Malaysia Crude Palm Oil settlement price during January were eroded in the first half of February. The price began the month at RM4,228/tonne (US$1,099), but by the 16th of February, it was down to RM4,001/tonne (US$1,040). That price was 1.5% less than the month before, 11.6% less than the year before and 43.7% less than the all-time high in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Stronger Ringgit and lower exports hit Malaysian palm oil prices
A combination of a stronger Malaysian Ringgit, weak export demand and upcoming holidays has put pressure on Malaysian palm oil prices.
The Ringgit has strengthened against the US dollar, while there has been a drop in crude oil prices, which is putting pressure on all vegetable oil prices, especially palm oil, as it is a major ingredient in biodiesel. Cargo surveyors have estimated that the first half of February exports fell by 11.2% month-on-month, with further weak demand expected. Malaysian Lunar New Year holidays on the 17th and 18th of February mean that trading exchanges are closed, putting further pressure on prices. However, the 17th of February is also the start of Ramadan, which could increase the demand for vegetable oil.
Record global veg oil production holds down Malaysian palm oil prices
Higher production and stocks of vegetable oils across the world could put pressure on palm oil prices for the rest of the year, delegates to the Palm & Lauric Oils Price Outlook Conference in Malaysia heard the week commencing February 9th.
Record soybean harvests in Brazil and Argentina have led to large supplies, with key buyers, including China and India, buying up stocks of soy oil in favour of palm oil. China is also selling soy oil to India at competitive prices. Demand for palm oil may increase if countries include more of it in biodiesel, but Indonesia recently announced that it would scale back its planned increase in palm oil content in its biodiesel. Analysts expected Indonesian palm oil production to drop 2 million tonnes in 2026 to 49 million tonnes.
Analysts at the conference expect the average price of Malaysian palm oil to remain around RM4,100/tonne (US$1,066) until April, although current prices are nearer to RM4,000/tonne (US$1,040). There could be more price pressure if Indian demand fails to pick up.
Malaysian palm oil production was down in January, but still higher than January 2025
Production of crude palm oil was down 13.8% in January 2026 compared to December 2025 at 1.577 million tonnes, but that was 27.2% higher than January 2025, according to the Malaysian Palm Oil Board. January palm kernel production was down 13.1% on the month, but 29.5% higher than the comparable month in 2025, with crude palm oil output down 5.8% over the month and 44.1% over the year. There was a similar change in the monthly and annual production of palm kernel cake.
Stocks of crude palm oil and processed palm oil were down 8.2% and 7.0%, respectively, in the month, while palm kernel oil stocks rose 22.5%. Exports of palm oil were 11.4% higher at 1.484 million tonnes compared to December, which was 25.8% more than January 2025. Exports of other palm oil commodities were lower in the month, as were imports.
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.