Can crude palm oil prices sustain above RM4,000 per tonne?

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Crude Palm Oil Prices Expected to Remain Above RM4,000 Per Tonne

Crude palm oil (CPO) prices are anticipated to trade above RM4,000 per tonne by the end of the year, with the current market exceeding RM4,200 per tonne. This outlook is considered bullish, supported by factors such as the narrowing price gap with soybean oil.
Bullish Outlook for CPO Prices

The price of crude palm oil is projected to hold steady above the RM4,000 per tonne mark through the close of the year. Current market figures indicate prices are already surpassing RM4,200 per tonne, reinforcing a positive sentiment for the commodity.
Narrowing Price Gap with Soybean Oil

A key factor contributing to the bullish outlook is the anticipated rebound in soybean oil prices. This recovery is expected to reduce the significant price difference between soybean oil and palm oil, thereby strengthening Malaysia's position in the global palm oil market.
Focus on Yield and Sustainability

Beyond price dynamics, Malaysia continues to prioritise increasing palm oil yield through the use of superior planting materials and a commitment to avoiding deforestation. Efforts are also underway to transform palm oil waste into valuable resources, such as using empty fruit bunches for renewable energy and used cooking oil for sustainable aviation fuel.
Minimal Impact from Floods on Production

Nationwide floods have not significantly impacted palm oil production thus far, with no adverse reports received regarding the sector's output. While concerns exist for smallholders who may face increased costs and reduced revenue, the overall palm oil industry remains stable.

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Can crude palm oil prices sustain above RM4,000 per tonne?

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