Crude oil weakness and declining Malaysian exports double pressure, palm oil hits low point for two consecutive weeks.

Due to weak trends in crude oil and a decline in exports from Malaysia, palm oil prices fell for the second consecutive trading day, reaching their lowest point in two weeks. On Friday, palm oil futures prices fell below 4000 ringgit per ton (approximately 986 US dollars); meanwhile, soybean oil, the main competitor of palm oil in the fuel and food markets, also saw a drop of 1.8% on Wednesday. Against the backdrop of widespread geopolitical risks and continued global supply growth, crude oil recorded its largest annual decline since 2020 by the end of 2025. West Texas Intermediate (WTI) crude oil fell 0.9% on Wednesday, settling at 57.42 US dollars, bringing its total decline for the year to 20%. Palm oil prices follow the decline in crude oil Gnanasekar Thiagarajan, Director of Trading and Hedging Strategies at Kaleesuwari Intercontinental, stated that the weak exports from Malaysia are putting pressure on the palm oil market. According to data from AmSpec, exports from this second largest planting country globally fell by 5% month-on-month in December, to 1.2 million tons. Thiagarajan said, "Due to possible holiday season purchases providing support below 4000 ringgit per ton, we expect palm oil to see buying on dips. Demand leading up to the Lunar New Year and fasting month in February 2026 is expected to drive prices higher."