Malaysia: CGS Sees CPO Price Rally Into 2026 Due To Supply Risks, Forecasts RM4,500

demand accelerates, while palm oil supply growth slows. Additionally, ongoing land legality reviews and seizures in Indonesia, which have affected over 3.3 million hectares of plantations, could weigh on production from the second half of 2026 onwards — lending further support to prices. “Our revised assumptions reflect the combined effects of rising biodiesel mandates, constrained land expansion, and increasing geopolitical uncertainty. These factors are likely to keep CPO prices elevated over the medium term,” CGS International said in its report.’ Based on its earnings sensitivity analysis, upstream-focused plantation companies are expected to see the largest boost in profitability from higher CPO prices. In Malaysia, Genting Plantations (GENP), SD Guthrie (SDG) and Hap Seng Plantations (HAPL) are projected to record the strongest earnings uplift for every 5% increase in CPO price. Conversely, downstream and integrated players may experience diluted margins as higher feedstock ...