Palm oil prices in the global market are set to rise further in 2025 amid supply concerns

Published 2024년 12월 20일

Tridge summary

Crude palm oil (CPO) prices are projected to rise to an average of RM4,600 per tonne in 2025, up from RM4,200 this year, due to supply-side issues such as weather disruptions and slow replanting progress. Reduced exports from Indonesia, the world's largest palm oil producer, and global supply constraints are also contributing to the increase in palm oil prices. Demand for palm oil in biodiesel production is expected to remain robust, supported by policy mandates in Indonesia. Adverse weather conditions in Malaysia are expected to continue into the first quarter of 2025, while supply constraints are expected to affect substitute oils such as soybean and sunflower oil.

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

Original content

KUALA LUMPUR (Dec 20): Crude palm oil (CPO) prices are expected to climb to a higher average of RM4,600 per tonne in 2025, from the projected average of RM4,200 per tonne this year, due to supply-side challenges, including weather disruptions and slow replanting progress. Reduced exports from Indonesia, the world’s largest palm oil producer, coupled with global supply constraints and adverse weather conditions in Malaysia, have kept palm oil prices elevated throughout this year, said MARC Ratings in a note on Friday. Palm oil prices are expected to remain high, with demand for palm oil in biodiesel production remaining robust, supported by policy mandates in Indonesia, where the biodiesel blend rate is set to rise to 40% (B40) and later to 50% (B50), from 35% (B35) currently. The agency anticipates that flooding in key Malaysian production states, which is impacting palm oil production, will continue through the first quarter of 2025. MARC noted that production typically peaks in ...

Source: Theedgemarkets