Malaysian export demand increased, palm oil rose to the highest level in two weeks

The Zhitong Finance App learned that palm oil prices rose for the fourth consecutive trading day and hit the highest level in two weeks, supported by increased demand for Malaysian products.

Exports from Malaysia, the second-largest producer of palm oil, increased 1.6% month-on-month in the first 25 days of December, according to Intertek Testing Services. India was the biggest buyer, importing 279,550 tons, a 66% increase over the same period last month.

“As demand catches up during the holiday season, exports are bound to increase,” said Gnanasekar Thiagarajan, head of trading and hedging strategy at Kaleesuwari Intercontinental. Demand before Lunar New Year and Ramadan in February 2026 is expected to drive up prices.

However, he added that a stronger Malaysian ringgit may limit gains. The Malaysian ringgit strengthened for the third day in a row and is expected to hit a new high in four and a half years, reducing the appeal of this tropical commodity to overseas buyers.