Palm oil prices set to remain stable as emerging markets offset weaker demand

According to the Malaysian Palm Oil Council (MPOC), Malaysian palm oil prices are expected to be in the range of 4,400 to 4,600 Malaysian ringgit ($994 to $1,039) per tonne in March as emerging markets in sub-Saharan Africa fill the demand gap from key buyers such as India and China.

Despite softening demand in traditional markets, palm oil remained the top value commodity in the first quarter of 2025, with exports shifting towards emerging markets driven by the continent’s population growing by 30 million annually, the MPOC said in a statement on its official portal.

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

With crude palm oil (CPO) prices averaging $1,061 per tonne, India’s palm oil imports fell to 648,000 tonnes in January-February 2025, lower than soybean oil imports of 727,000 tonnes. However, India’s switch to soybean oil has only partially covered palm oil demand, raising optimism that imports will rise in the coming weeks as India replenishes its stockpiles, which could stabilise prices, the organisation said.

China, in the period, imported only the primary palm oil, averaging 300,000 tonnes per month in 2024

MPOC said it expects CPO prices to remain within the range, in part due to increased competition from abundant and competitively priced soybean oil in the global market.

Tags: prices, Malaysia, palm oil