Crude Palm Oil Prices Likely to Remain Firm

30-Jun-2026 04:31 PM

Bangi: The Malaysian Palm Oil Board (MPOB) has projected that the average price of crude palm oil (CPO) will remain firm, ranging between 4,000 and 4,300 ringgit per tonne during the current year. It states that palm oil will find support from fluctuations in global petroleum prices caused by the crisis in West Asia.

The Director-General of MPOB notes that CPO prices are unlikely to see a significant decline in the near future. The situation near the Strait of Hormuz, involving Iran, could keep the global edible oil market strong in the coming months.

There is a likelihood of reduced rainfall and drought-like conditions due to the impact of the El Niño weather cycle, which could affect oil palm productivity in plantations.

This is expected to have a psychological impact on the palm oil market; while the effect may not be immediately visible, the possibility of long-term consequences cannot be ruled out.

The Malaysian government is striving to safeguard the interests of small-scale palm plantation owners to ensure the continuity of palm oil product exports from the country.