Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market
[KUALA LUMPUR] Malaysia’s palm oil exports to China fell by almost 29 per cent in the first 10 months of 2025, the country’s plantation and commodities minister said on Thursday (Nov 27).
The decline indicates deeper challenges relating not only to competitiveness and logistics, but also to pricing dynamics and market positioning, Johari Abdul Ghani said in his opening speech at an industry dialogue.
Malaysia’s palm oil exports to China totalled 1.39 million tonnes last year, down 5.3 per cent from a year earlier.
Johari said the decline was attributable to higher prices for palm oil compared with soybean oil.
“As soybean oil is also imported as an edible oil for consumption and industrial use in China, buyers opted for the cheaper alternative … This is not about geopolitics,” he said later at a press conference.
Palm oil tracks the price movements of rival edible oils, including soybean oil, as it competes for a share of the global vegetable oils market.
Malaysia’s crude palm oil futures on the Bursa Malaysia Derivatives Exchange were trading at RM4,060 (S$1,278) per tonne on Thursday.
Johari suggested that Chinese buyers should engage directly with major palm oil producers in Malaysia, noting that buyers who commit to one-year purchase agreements may be eligible for discounts.
Johari said that he expects palm prices to remain above RM4,000 per tonne by the end of the year and is optimistic about palm oil exports to China next year, adding that he believes the palm-soybean price spread would be normalised. REUTERS
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