Malaysian palm oil prices rose to 4,657 ringgit/tonne, boosted by the Dalian Commodity Exchange. Indonesia is considering imposing additional tariffs, while Malaysia has raised its export tax to 9.5%.
Palm oil futures in Malaysia recorded their fourth consecutive day of gains on March 16, 2026. This trend was strongly driven by the upturn in the vegetable oil market on the Dalian Commodity Exchange, pushing palm oil prices to their highest level since June 2026, despite downward pressure from crude oil and soybean oil prices in Chicago.
Vegetable oil price trends on various exchanges.
On the Bursa Malaysia exchange, the FCPOc3 palm oil contract for June 2026 delivery opened the session with a gain of 76 ringgit. By the midday break, the contract had risen a further 85 ringgit, or 1.86%, closing at 4,657 ringgit per ton (approximately US$1,184.99 per ton).
On the Dalian Commodity Exchange, the DBYcv1 soybean oil contract rose 0.34%, while the DCPcv1 palm oil contract recorded a sharp increase of 2.52%. Conversely, on the Chicago exchange, the price of BOcv1 soybean oil fell 0.95%. This disparity reflects the fierce competition for market share among vegetable oils on a global scale.
Policy moves from Indonesia and Malaysia
Indonesia, the world's largest producer and exporter of palm oil, is considering tightening financial measures. Indonesia's senior Economy Minister said the government may impose additional taxes on certain commodities, including palm oil, to mitigate the impact on the budget amid rising global oil prices.
At the same time, Malaysia officially raised its benchmark price for crude palm oil for April 2026, while also increasing the export tax to 9.5%. In addition, the 0.15% appreciation of the Malaysian ringgit against the US dollar contributed to higher costs for international buyers, making the commodity more expensive.
Supply and demand outlook and market forecast
On the supply side, the Indonesian Palm Oil Association (GAPKI) forecasts the country's crude palm oil production in 2025 to reach 51.66 million tons, a 7.3% increase year-on-year. Meanwhile, demand from emerging markets remains high. India's palm oil imports in February 2026 increased by 11% to a six-month high due to more attractive discounts compared to sunflower oil.
Regarding exports, Intertek Testing Services estimates that Malaysia's exports in the first half of March 2026 increased sharply by 43.5% compared to the same period last year. However, the plan to blend 50% biodiesel (B50) in Indonesia is not expected to take place any earlier than June or July, later than previously calculated.
From a technical perspective, Reuters analyst Wang Tao believes that palm oil prices could test the support level of 4,494 ringgit/tonne if they fail to break through the resistance level of 4,612 ringgit/tonne in the short term.
Source: Lam Dong News
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
