Palm oil prices likely to remain elevated

RM4,300 in 2025 and RM150 per tonne to RM4,200 in 2026, citing stronger-than-expected year-to-date performance and continued tightness in palm oil supply. “The firm CPO price trend will likely sustain into the near-to-medium term due to several supporting factors, including the potential return of La Nina, higher biodiesel mandate in Indonesia and renewed concerns on slowing palm output growth,” it said in a report to clients yesterday. HLIB Research highlighted that despite the seasonally higher cropping cycle and subdued export demand, average CPO prices have remained firm at RM4,345 per tonne year-to-date. The report noted that “current supply-demand dynamics are largely priced-in”, indicating that tightness will persist. The research house added major weather forecasts have increased the likelihood of La Nina developing in 4Q25, which could disrupt palm oil harvesting in Malaysia and Indonesia and hinder soybean planting in South America. “If materialised, such weather ...