Palm Oil Hits 5-Week High Amid Supply Drop, India's Strong Demand

• Palm oil prices surged to a 5-week high, crossing 4100 ringgit due to a fall in supply.
• Rising demand from India, the largest market for palm oil, is a key factor supporting prices.
• India's imports were at an 8-month low in December, with expectations of increased purchases of 7-8 lakh tonnes in the coming months.
• Anticipated demand from China for the Lunar New Year (February 17, 2026) and recovery in soybean prices also contribute to the price rally.
• Indonesia's continued B40 implementation in 2026 and postponement of B50 are significant for the market.

Why It Matters: Palm oil prices reached a 5-week high driven by supply shortages and robust demand from India and China.