Agencies foresee palm oil prices to remain firm

Analysts on Tuesday forecast crude palm oil (CPO) prices to remain firm despite Malaysia’s palm oil stockpile hitting a six-month high in October. Maybank Investment Bank said in a note that compared to a year ago, Malaysia’s October stockpile of 2.46 million tons, up 31 percent year-on-year, is ample for output recovery. However, given the year-to-date strength of CPO prices of 4,346 ringgit per ton, Maybank has raised its 2025 and 2026 CPO average selling price forecasts to 4,330 ringgit per ton, up 8.3 percent, and 4,100 ringgit per ton, up 2.5 percent, respectively. Meanwhile, Kenanga Research noted that, coupled with expanding Latin American soybean area and slow palm oil supply growth, 2026 edible oil output should improve by 5 million to 7 million tons, or 2 percent to 3 percent year-on-year, or just enough to match a slow demand growth scenario. “If demand were to grow stronger, it may still outstrip supply. As such, edible oil prices, including palm oil prices, should ...