Kuala Lumpur, February 12, 2026 – Palm oil futures in Malaysia fell for a third straight session on Thursday. The decline came as the local currency strengthened and early export data showed weaker demand.
The benchmark April contract dropped to around 4,048 ringgit per tonne. Traders said a stronger ringgit made Malaysian exports more expensive for foreign buyers. This reduced buying interest in the market.
Market participants also tracked price movements in rival edible oils. Dalian palm oil contracts traded lower during the session. At the same time, soyoil prices in China and Chicago showed slight gains.
The mixed performance of competing oils added pressure on palm oil. Traders often compare prices with substitutes before making trading decisions. When alternatives weaken, palm oil usually follows the same direction.
On the policy side, Malaysia raised the reference price for crude palm oil for March. However, the export duty remained unchanged at 9 percent. The Malaysian Palm Oil Board shared this update in its latest circular.
The new March reference price was set at RM3,896.09 per tonne. In February, it stood at RM3,846.84 per tonne. Both months carried the same duty rate.
Under Malaysia’s tax structure, the export duty starts at 3 percent. This applies when prices range between RM2,250 and RM2,400 per tonne. The maximum duty reaches 10 percent once prices cross RM4,050 per tonne.
Malaysia is the world’s second-largest exporter of palm oil. Any change in its pricing policy directly affects global markets. However, traders said the latest policy offered little support.
Meanwhile, broader trade developments also remained in focus. India and Malaysia recently agreed to strengthen cooperation in key sectors. These include semiconductors, health, and food security.
Indian Prime Minister Narendra Modi visited Malaysia after more than ten years. Several agreements were signed during his meeting with Prime Minister Anwar Ibrahim.
Modi said both countries aim to expand ties in digital technology and energy. Analysts believe stronger trade relations could benefit commodity flows in the future.
Malaysia is among the top global exporters of semiconductors. The sector contributes about 25 percent to its GDP. India exported goods worth $7.32 billion last year, mainly in engineering products.
Imports from Malaysia reached $12.54 billion. These included minerals, vegetable oil, and machinery.
In other news read more about PM Shehbaz Prioritizes Farmers’ Prosperity, Calls for Boost in Agricultural Exports
For now, palm oil prices remain under pressure. Traders expect further movement based on currency trends and export demand. Palm oil will likely stay sensitive to global market signals in the coming days.
