Malaysian palm oil prices to range MYR4,400-MYR4,600 in March, as emerging markets offset key buyer decline

Palm oil prices in Malaysia are expected to range between MYR4,400-MYR4,600 (US$994-US$1,039)/tonne in March, with emerging markets – such as Sub-Saharan Africa – filling the gap in demand from key buyers like India and China, according to the Malaysian Palm Oil Council (MPOC).

Despite weaker demand from traditional markets, palm oil 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 30M, MPOC said in a statement on his website on 17 March.

“This trend is expected to continue throughout 2025, keeping Malaysian palm oil exports strong,” the association said.

Against a backdrop of crude palm oil (CPO) prices averaging MYR4,700/(US$1,061) tonne, India’s palm oil imports dropped to 648,000 tonnes from January-February 2025. This volume was below soyabean oil imports, which totalled 727,000 tonnes.

Meanwhile, China had been importing only its core palm oil demand, averaging 300,000 tonnes/month in 2024, the organisation said.

MPOC said it expected CPO prices to fluctuate between MYR4,400-MYR4,600 (US$994-US$1,039)/tonne in March, due to increased competition from abundant and competitively priced soyabean oil in the global market.

However, India’s shift towards soyabean oil had only partially replaced its palm oil demand, leading to optimism that palm oil imports would rise in the coming weeks as India replenished its stocks, potentially stabilising prices, the organisation said.

Tags: imports, sub-Saharan Africa, emerging markets, China, exports, prices, India, Malaysia, palm oil