Malaysian palm oil industry avoids rising aphid prices and costs

Malaysia’s palm oil industry is expected to maintain positive momentum in the near term, supported by rising exports amid high prices and falling inventories, Bernama reported, citing analysts.

Analysts predict that crude palm oil (CPO) prices are likely to remain elevated, hovering between RM4,200 and RM4,500 per tonne, driven by uncertainty in global trade and unclear biofuel policies in the United States.

According to the publication, the growing number of tariffs and changing trade barriers in the world’s major economies have disrupted the flow of competing edible oils, restricting supplies in key markets and increasing risk premiums through increased speculative buying.

“A notable example is China’s decision to impose anti-dumping duties on Canadian canola, which initially led to a rise in canola oil futures on Chinese exchanges. The gains then quickly spilled over into palm oil futures as traders reassessed their vegetable oil positions. The next step was the US biofuels policy changes under the 45Z program, which impacted soybean oil prices and subsequently led to a rise in CPO and all oils,” the publication reports.

Traders are also looking for a pick-up in exports as demand for palm oil in India increases ahead of the upcoming festive season. Seasonal stockpiling ahead of major festivals is expected to provide robust supply support in the coming months.

Malaysian palm oil stocks reached their highest in almost two years in July, as production outpaced exports, according to the Malaysian Palm Oil Board (MPOB). However, by the fourth quarter, a seasonal decline in production will allow the bulk of the volumes to come to market and support supply figures.

According to OleoScope, the FOB Malaysia palm oil price for August 22, 2025 was $1,094.50/t, up $12.44/t from the previous price of August 21, 2025 ($1,082.06/t).

Tags: Malaysia, palm oil