MPOC Sees CPO Remaining At RM3,750 To RM4,050 Range In May Before Gradual Recovery

KUALA LUMPUR, May 20 (Bernama) -- Crude palm oil (CPO) prices are expected to remain in the range of RM3,750 to RM4,050 per tonne in May before gradually recovering, according to the Malaysian Palm Oil Council (MPOC).

The council said the expected price range was influenced by the subdued global vegetable oil market, which lacks strong bullish drivers, as well as weak energy prices that continue to pressure biodiesel margins across major producing countries.

“(However), from June to September, global vegetable oil import demand is expected to shift in favour of palm oil, limiting further downside pressure on prices. The vegetable oil and energy markets have experienced volatility over the past two months, driven by escalating trade tensions between the United States and China, as well as the Organisation of the Petroleum Exporting Countries' (OPEC) decision to increase crude oil output starting in June,” it said in a statement.

Palm oil prices have declined by 18 per cent since April, while soybean oil prices have risen by seven per cent. Crude oil prices also dropped sharply, falling 20 per cent over the same period.

The MPOC said Malaysian palm oil production recorded a notable increase in April, rising by 298,000 tonnes compared to the previous month, supported by delayed harvesting activities in early March due to the monsoon season. It added that the increase in production during April is likely to be followed by a moderate rise from May to September, mainly due to the high base effect.

In line with the rise in production, palm oil stocks also saw an increase of 303,000 tonnes, reaching their highest level in six months.

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“The accumulation of stocks was primarily driven by subdued export performance in March and April.

“Sub-Saharan Africa remained the leading destination for Malaysian palm oil exports, with a 24 per cent increase during the first four months of 2025. The ASEAN region also recorded eight per cent growth, while exports to other regions declined,” it noted.

-- BERNAMA