CPO Prices To Stay Above RM4,450 Per Tonne In Near Term Amid Geopolitical Uncertainties - MPOC

KUALA LUMPUR, March 19 (Bernama) -- Crude palm oil (CPO) prices are expected to remain above RM4,450 in the near term, supported by elevated energy prices and a favourable palm oil-gasoil (POGO) spread, according to the Malaysian Palm Oil Council (MPOC).

However, the council said weaker economic growth and heightened price volatility arising from uncertainties in West Asia may temporarily delay imports from major markets, potentially capping the price rally.

“Vegetable oil prices moved into an uptrend in March after a prolonged consolidation since mid-2025, supported by rising crude oil prices amid logistical disruptions in the Strait of Hormuz, as well as force majeure declarations by several major oil refineries in West Asia,” it said in a statement today.

MPOC said the sharp rise in gasoil prices in the global market has improved the competitiveness of biodiesel usage and blending.

“Brazil’s biodiesel industry has called for an increase in the blending mandate from B15 to B16, while Indonesia is accelerating road tests for B50 blending to reduce import reliance, although the implementation timeline remains unclear,” it said.

On production, the council said Malaysia’s palm oil production declined by 18.5 per cent or 293,000 tonnes to 1.28 million tonnes in February due to fewer harvesting days due to the shorter month and the Lunar New Year public holiday.

“Palm oil exports remained robust in February, accounting for 88 per cent of Malaysia’s production and contributing to a lower stock level. Cumulative exports from January to February increased by 18.7 per cent to 2.58 million tonnes, with India contributing the largest share of the increase.

“India’s palm oil imports recovered strongly in the first two months of 2026, rising by 965,000 tonnes or 149 per cent to 1.6 million tonnes compared with the same period last year,” it added.

-- BERNAMA