Malaysian palm oil prices reversed course and rose to 4,460 ringgit/tonne on March 11.
Malaysian palm oil futures rose 0.72% on positive export data and a weaker ringgit. However, logistical risks from the Middle East conflict are putting pressure on supply.
At the close of trading on the morning of March 11, 2026, palm oil futures prices in the Malaysian market recorded a clear recovery. The main drivers of this growth were positive export reports in early March and the weakening of the Malaysian ringgit, making the commodity more attractive to international investors.
Vegetable oil price trends on major exchanges
On the Bursa Malaysia exchange, the FCPOc3 palm oil contract for May 2026 delivery recorded a gain of 32 ringgit, or 0.72%, closing at 4,460 ringgit (equivalent to US$1,137.46) per ton at the midday break. Earlier in the session, the market had briefly fallen to 4,395 ringgit per ton before reversing sharply higher.
At the same time, soybean oil prices BOcv1 on the Chicago exchange rose 2.04%. On the Dalian Commodity Exchange, soybean oil contracts DBYcv1 edged up 0.02%, while palm oil DCPcv1 recorded a 0.38% increase. This consensus of price increases across major exchanges reinforced optimistic sentiment for the global vegetable oil market.
Exports surged in early March.
Data from independent auditing firms indicates that Malaysia's export activity is recovering strongly. Specifically:
- AmSpec Agri Malaysia:Exports reached 581,364 tons in the first 10 days of March, a 45.3% increase compared to the same period in February (399,995 tons).
- Intertek Testing Services:The figure announced was 622,445 tons, a 37.9% increase compared to the previous month's 451,340 tons.
In addition, the ringgit depreciated by 0.03% against the US dollar at lunchtime, giving Malaysian palm oil a competitive price advantage in the export market.
Impacts from energy markets and geopolitics
Palm oil prices also received indirect support from the crude oil market. The International Energy Agency's (IEA) proposal to release large reserves to offset supply disruptions caused by conflicts in the Middle East has led to significant fluctuations in crude oil prices. As crude oil prices rise, palm oil becomes an attractive alternative feedstock for biodiesel production.
However, the Indonesian Palm Oil Producers Association (GAPKI) warned of logistics costs and shipping insurance fees increasing by up to 50% due to the conflict. Ships are being forced to take detours, slowing down deliveries. This could lead to increased inventories in Indonesia – the world's largest palm oil exporter – and put downward pressure on prices in the medium term.
Currently, demand from the two leading consumer markets, India and China, remains stable due to well-maintained domestic reserves in these countries. In India, importers are prioritizing urgent orders due to concerns about shipping delays from the Middle East.
