Crude Palm Oil Prices Likely to Remain Steady in Malaysia
07-Aug-2025 09:36 AM
Crude Palm Oil Prices Likely to Remain Steady in Malaysia
★ CPO stocks hit a 19-month high; reserves rose nearly 10% in July to 2.23 million tonnes — the highest since December 2023.
★ CPO prices are expected to remain within the RM3,800 to RM4,500 per tonne range for the rest of 2025.
★ July production increased by 8% compared to June, but demand from key buyers like India and China remained weak.
★ Stock levels may stay elevated for the next two months.
★ Strong biodiesel demand in Indonesia and slower output growth may help limit downside pressure.
★ Prices could temporarily dip to RM3,700 per tonne before Deepavali, but may recover to RM4,100–RM4,200 by year-end.
★ Indonesian biodiesel realization rate, the B50 policy, and the U.S. Renewable Volume Obligation (RVO) are key factors to watch.
★ In the near term, prices are expected to trade between RM4,100 and RM4,500 per tonne, with a possible fluctuation of ±5–10%.