CPO Prices Seen Trading At RM4,400 To RM4,600 A Tonne In March - MPOC

KUALA LUMPUR, March 17 (Bernama) -- The crude palm oil (CPO) prices are projected to fluctuate between RM4,400 and RM4,600 per tonne in March 2025, influenced by increased competition from abundant and competitively priced soybean oil in the global market.

The Malaysian Palm Oil Council (MPOC) said that high palm oil price and tight export supplies have impacted consumption in key markets such as India and China, particularly in the first two months of this year.

“Malaysian palm oil inventory fell to 1.51 million tonnes in February 2025, the lowest level since April 2023, while production from January to February this year hit a three-year low at 2.42 million tonnes compared to 2.66 million tonnes in 2024 and 2.63 million tonnes in 2023.

“The decline in production was driven by harvest delays due to heavy rainfall and exhausted oil palm trees following strong production in early 2024,” it said in a statement.

A recovery in year-on-year production growth is expected only from August onwards, it added.

The council noted that for the first time in years, India’s palm oil imports from January to February 2025 dropped to just 648,000 tonnes, falling behind soybean oil imports at 727,000 tonnes.

Meanwhile, China imported only its core palm oil demand, averaging 300,000 tonnes per month in 2024.

It pointed out that, despite weaker demand from traditional markets, palm oil has remained the price leader in the first quarter of 2025, with exports shifting towards emerging markets in sub-Saharan Africa, driven by its annual population growth of 30 million.

This trend is expected to continue throughout 2025, keeping Malaysian palm oil exports strong, MPOC added.

“Palm oil prices are expected to trade range-bound in the coming weeks as market participants speculate on export availability from Malaysia and Indonesia, amid a gradual production recovery from March onwards as the monsoon season concludes.

“Additionally, negative growth in vegetable oil consumption for energy purposes means any demand expansion in 2025 will need to come from food and non-energy sectors,” it said.

MPOC stated that this shift in demand dynamics could limit the potential for a price rally in vegetable oils.

-- BERNAMA