Palm oil exports from Malaysia to China have fallen 29% since the beginning of the year amid rising prices

Malaysia's palm oil exports to China fell by almost 29% in the first 10 months of 2025, the country's Minister of Plantations and Commodities Johari said on Thursday.

According to Reuters, the decline reflects issues related not only to competitiveness and logistics, but also to pricing dynamics and market positioning. Last year, palm oil exports from Malaysia to China amounted to 1.39 million tonnes, which is 5.3% lower than in 2023.

China's active increase in supplies of cheap soybeans from Brazil, and now the additional purchase of another 12 million tons of soybeans from the US, will continue to oversaturate the Chinese market with soybean oil, the surplus of which is already being exported to India.

According to Johari, the decrease in palm oil supplies is due to its higher prices compared to soybean oil.

"Since soybean oil is also imported into China as an edible oil for consumption and industrial use, buyers have chosen a cheaper alternative, and this is not about geopolitics," the head of the agency said at a press conference.

The price of palm oil on the Daylian China exchange for delivery in November is around $1,185/t, while the price of soybean oil is $1,170/t.

The minister suggested that Chinese buyers should work directly with large palm oil producers from Malaysia, and noted that buyers who have signed annual purchase agreements may be eligible for discounts.

Declining demand for palm oil from major importers India and China will continue to pressure palm oil prices in December and will restrain price increases in the neighboring sunflower oil market.

December palm oil futures FCPO1 on the Bursa Malaysia exchange fell by 4.9% to 4,114 ringgit/t or $995/t in the month, but last week quotes fell to $965/t amid low export rates in November, so we can expect further growth in palm oil inventories in Malaysia in December.