Delayed palm oil peak season pushes CPO towards RM4,600 per tonne in first half of 2026 — Glenauk Economics

Crude palm oil (CPO) prices are expected to remain firm, trading between RM4,300 and RM4,600 per tonne in the first half of 2026, according to a forecast by Glenauk Economics. This price strength is supported by a significant delay in the industry’s peak production season, with yields now only expected to trend downwards in December 2025 and January 2026. The benchmark CPO futures on the Bursa Malaysia Derivatives Exchange closed at RM4,115 per tonne on Monday. The research house, cited in a report by CIMB Securities, warned that potential heavier rainfall across northern Peninsular Malaysia could quickly reduce fresh fruit bunch yields, as access to estates becomes difficult, disrupting harvesting activities. While short-term volatility linked to biodiesel policy changes in Indonesia exists, “palm oil fundamentals remain firm”, Glenauk noted. Glenauk expects palm oil production to strengthen in 2026, with Indonesia’s output rising by 3%, and Malaysia’s by 1% to between 19.6 and ...