CPO Prices To Average RM4,300 In 2025, Ease To RM4,000 In 2026-2027 - Kenanga IB
KUALA LUMPUR, Sept 29 (Bernama) -- Crude palm oil (CPO) prices for 2025 are expected to average closer to RM4,300 per tonne before easing to around RM4,000 in 2026 and 2027, said Kenanga Investment Bank Bhd (Kenanga IB).
The investment bank said CPO prices were strong in the first quarter of 2025 (1Q 2025), trading above soybean oil prices as Indonesia’s yields recovered from a poor 2024.
“CPO prices had since softened but remained more elevated than had been earlier expected due to tight supply despite year-on-year (y-o-y) improvement,” it said in a note today.
Kenanga IB expects global edible oil supply to improve by two to three per cent y-o-y in 2026. This incremental supply should be absorbed easily next year as the underlying demand continues to grow by three to four per cent annually.
“Hence, inventory levels are not expected to improve much in 2026 and potentially into 2027. This is the basis for our expectation for firm CPO prices in 2026 and 2027,” it said.
-- BERNAMA