Lower crude palm oil prices on the horizon

Published 2025년 4월 16일

Tridge summary

CGS International Research (CGSI Research) predicts a decrease in crude palm oil (CPO) prices for the second quarter of the year due to an increase in supply and declining prices. This is despite stronger-than-anticipated domestic consumption and higher-than-expected production in Malaysia. The research house attributes the expected price drop to improving production conditions and geopolitical pressure, including global trade volatility which could disrupt supply chains and decrease demand. However, palm oil production is expected to remain high due to yield recovery and favourable weather conditions. CGSI Research recommends focusing on pure Malaysian upstream players, particularly those with high-dividend-yield names like Hap Seng Plantations Holdings Bhd and Ta Ann Holdings Bhd.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Crude palm oil (CPO) prices are projected to soften in the second quarter of this year, weighed down by increasing supply and declining prices, says CGS International Research (CGSI Research) . Palm oil production for March showed that Malaysia’s palm oil inventory rose 4% month-on-month (m-o-m), according to the Malaysia Palm Oil Board (MPOB). CGSI Research said the increase came even as stronger-than-anticipated domestic consumption helped offset the higher- than-expected output. Palm oil production also came in higher than expected at 1.39 million tonnes for the month in review, reflecting a 16.8% m-o-m increase. “We reckon the variance was due to a rush to harvest crops ahead of the Hari Raya holidays at the end of March,” the research house said. Looking ahead, CGSI Research said the expected dip in CPO prices will be largely driven by improving production conditions and geopolitical pressure. It said the ongoing worldwide trade volatility is creating uncertainty in the ...

Source: UkrAgroConsult