Malaysia: CPO price capped at RM4,050 in May before recovery, says MPOC

Published 2025년 5월 21일

Tridge summary

The Malaysian Palm Oil Council (MPOC) forecasts that palm oil prices will remain stable between RM3,750 to RM4,050 per tonne in May 2025, with a gradual increase thereafter due to low energy prices and biodiesel margins. This is despite a recent 18% drop in palm oil prices and a 7% increase in soybean oil prices since April, attributed to the US-China trade war and Opec's crude oil production increase. Palm oil production and stocks have also seen an increase, with Sub-Saharan Africa being the leading destination for exports. Biodiesel production and demand, however, remain weak, leading to a projected global output decrease of 1.7 million tonnes this year.

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Original content

The Malaysian Palm Oil Council (MPOC) expects palm oil prices to remain within the RM3,750 to RM4,050 per tonne range in May 2025, before gradually recovering amid weak energy prices and biodiesel margins. “From June to September, global vegetable oil import demand is expected to shift in favour of palm oil, limiting further downside pressure on prices,” said MPOC in a statement on Tuesday. Since April, palm oil prices have dropped by 18%, while soybean oil prices have climbed by 7%. Crude oil prices declined by 20% over the same period, the statement said. The MPOC said this is due to global vegetable oil and energy markets being under pressure over the past two months, amid the US-China trade war, as well as the Organization of the Petroleum Exporting Countries (Opec) ramping up crude oil production, starting in June. The council also reported that palm oil production rose sharply in April by 298,000 tonnes, compared to the previous month, partly because harvesting was ...

Source: UkrAgroConsult