CPO Prices Expected to Stay Firm in Malaysia
07-Aug-2025 12:54 PM
Kuala Lumpur. Although the outstanding stock of palm oil in Malaysia has increased to the highest level in the last 19 months, indicating some pressure on its prices,
but in the coming months, the demand for palm oil is expected to increase rapidly in many major buyer countries and especially India, which can strengthen the Malaysian market.
According to analysts in the industry trade sector, the futures price of crude palm oil (CPO) is expected to remain between 3800 to 4500 ringgit per tonne in Malaysia during the remaining months of the year 2025, which will prove to be attractive and profitable for entrepreneurs.
The benchmark futures price of CPO closed at 4220 ringgit per tonne on the previous day. Although the price of CPO has declined this time compared to last year,
but there are signs of gradual improvement in it since the beginning of May. At the beginning of May, the futures price had come down to 3772 ringgit per tonne. There was a sharp decline in palm oil imports in India during January to April 2025, but it started increasing from May.
Industry and trade sector analysts have estimated that the total outstanding stock of palm oil in Malaysia will increase by 10 percent to around 22.30 lakh tonnes at the end of July as compared to June, which is the highest level in the last 19 months.
The official monthly report of the government body - Malaysian Palm Oil Board (Ampob) is likely to be released on August 11, which will give a detailed description of palm oil production, export-import, domestic use and outstanding stock for the month of July.
According to a reviewer, if the outstanding stock of palm oil remains between 22-23 lakh tonnes till the end of the year, then there will not be much burden on the Malaysian industry and market because it can be managed but there will be some impact.
In fact, for the last several months, this outstanding stock was running below 20 lakh tonnes, which has now increased to above 22 lakh tonnes. India is likely to import huge quantities of palm oil during August-October to meet festive demand.