2025.12.1504:47:11UTC+00Palm Oil Subdued to Start the Week

Malaysian palm oil futures remained relatively unchanged on Monday, stabilizing around MYR 4,020 per tonne. This followed a significant decline in the previous session, with prices having reached a two-week low, triggering bargain hunting. Market participants were also evaluating the U.S. Department of Agriculture's confirmation of private export sales of 132,000 metric tons of U.S. soybeans to China, scheduled for delivery in the 2025/26 marketing year, an announcement that could impact the dynamics of competing vegetable oil markets. Additionally, investors considered disappointing economic data from China, a major importer, where November's industrial production and retail sales growth did not meet expectations due to ongoing domestic and international challenges. In parallel developments, the Malaysian Palm Oil Board's recent data indicated that crude palm oil production in November dropped by 5.3% month-on-month, down to 1.94 million tonnes. However, end-of-November stockpiles surged by 13% to 2.84 million tonnes, marking the highest level in six and a half years, driven by robust annual output likely to surpass 20 million tonnes for the first time.