Commodity: cpo

Palm oil is a vegetable oil obtained from palm oil and is used in a variety of consumer goods, from processed foods to biofuels. Indonesia is a major palm oil producer, with a record 43.5 million tonnes of palm oil produced in 2020/2021. Indonesia and Malaysia are also the world's largest palm oil exporters, with total exports of more than 28.8 million and 17 million tons in 2020/2021, respectively. India imports the most palm oil of any country, with an import value of around $5.5 billion for 2020.

After prices dropped to MYR 4,222 in the previous session, Malaysian palm oil futures edged higher to about MYR 4,240 per tonne amid bargain shopping. Along with data indicating that Indonesia, the world's largest producer, shipped a substantial 11 million metric tons of crude and processed palm oil in H1 of 2025, a weaker ringgit further bolstered confidence. However, following President Trump's reaffirmation of a 10% worldwide base tariff and imposition of levies of up to 41% on nations without trade agreements with the United States, prices are headed for a second consecutive weekly loss, down roughly 0.8%. A private poll revealed that manufacturing activity in China, a major buyer, unexpectedly decreased in July, which is consistent with official data showing a fourth monthly decline. On the export front, July shipments were sluggish, with cargo surveyors noting a 6.7%–9.6% fall from June. Meanwhile, the EU is reportedly set to grant a zero tariff rate for up to 1 million tons of Indonesian crude palm oil annually under a pending free trade deal, raising competition for Malaysian exporters.

Worldwide palm oil consumption: 73.87 million tons. Worldwide palm oil production: 75.5 million tons