Lang
Malaysia's Plantation and Commodities Minister said on Thursday that the country's palm oil exports to China fell by nearly 29% during the first ten months of 2025.
According to Reuters, the decline reflects broader issues that go beyond competitiveness and logistics, also tying into pricing dynamics and market positioning. Last year, Malaysia's total palm oil exports to China stood at 1.39 million tonnes, down 5.3% from the 2023 target.
The minister attributed the decline to palm oil prices rising relative to soybean oil.
Speaking after a press conference, the minister said: "Since soybean oil is also imported into China as an edible oil for both human consumption and industrial use, buyers have opted for the cheaper alternative... This has nothing to do with geopolitics."
Palm oil prices tend to track the pricing dynamics of competing edible oils, including soybean oil.
According to OleoScope, the price of refined, bleached and deodorised (RBD) palm oil on China's Dalian Exchange, for November delivery, stood at $1,185.48 a tonne on 27 November 2025. This was $9.64 a tonne higher than the previous session's price recorded on 26 November 2025 ($1,175.84 a tonne).
By comparison, soybean oil on the Dalian Exchange, for November delivery, was priced at $1,171.07 a tonne on 27 November 2025, up $11.62 a tonne from the previous session's price on 26 November 2025 ($1,159.44 a tonne). This latest figure represents the highest level in a week.
The minister suggested that Chinese buyers deal directly with Malaysia's major palm oil producers, noting that buyers entering into annual purchase agreements may be eligible for discounts.