Palm oil prices could range between RM4,000 and RM5,000 per tonne in 2025 in Indonesia and Malaysia

Published 2024년 12월 9일

Tridge summary

The Council of Palm Oil Producing Countries (CPOPC) predicts that palm oil prices could reach between RM4,000 and RM5,000 per tonne in 2025 due to stagnating production in Indonesia and Malaysia. This stagnation, along with ageing plantations, unpredictable weather, and limited expansion, is expected to lead to a supply shortage and drive prices higher. The current price level of around RM5,000 per tonne may be temporary and is influenced by floods in Malaysia. CPOPC, which includes Malaysia, Indonesia, Honduras, and Papua New Guinea as full members, is actively trying to add Thailand as a member to control 93 to 95% of global palm oil production.

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Original content

The Council of Palm Oil Producing Countries (CPOPC) forecasts palm oil prices could range between RM4,000 and RM5,000 per tonne in 2025, driven by stagnating production in key markets, particularly Indonesia and Malaysia. “As global demand for palm oil grows, stagnating production is likely to result in a supply shortage, driving prices higher,” CPOPC deputy secretary-general Datuk Nageeb Wahab told Bernama on Friday. He noted that the current price level of around RM5,000 per tonne might be temporary, largely influenced by Malaysia’s ongoing floods, which have bolstered bullish market sentiment. Nageeb also highlighted that the stagnation in production, exacerbated by ageing plantations, unpredictable weather, and limited expansion into new plantation areas, is expected to strain global supply, further pushing prices upward. Regarding CPOPC’s membership, Nageeb revealed that the council currently includes Malaysia, Indonesia, Honduras, and Papua New Guinea as full members, with ...

Source: UkrAgroConsult