CPO FUTURES LIKELY TO TRADE BETWEEN RM3,800-RM4,000 PER TONNE UNTIL JULY 2026 - EXPERT

KUALA LUMPUR, Feb 11 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) are expected to trade between RM3,800 and RM4,000 per tonne during January-July 2026, said an industry expert.

Godrej International Ltd director Dorab Mistry said barring any weather-related factors such as drought, this forecast should be assessed after July, taking into consideration new factors and Indonesia’s move for the biodiesel B50 mandate.

“CPO futures below RM4,000 are not attractive to listed palm oil companies and shareholders. So I expect palm futures recovery to fizzle out as we move into April.

“At the same time, if the futures sink below RM4,000, there will be strong efforts to support and talk up the price of palm oil, and you will have Indonesian industry captains and ministers talking about the B50 (mandate) again,” he said at the 37th Palm and Lauric Oils Price Outlook Conference and Exhibition (POC) 2026 here today in a session entitled “Global Palm and Vegoils Price Outlook 2026 in The Reign of President Trump and Prabowo”.

Dorab said adequate manpower on Malaysian plantations and weather conditions helped improve the 2025 production to over 20 million tonnes versus an expected 19.3 million tonnes.

“Palm oil production in Malaysia from October 2025 performed well. With the rise in labour, the palms have reverted to their old cycle. 

“At the same time, palm stocks in Malaysia exceeded three million tonnes versus the expected two million tonnes, while palm olein has regained its price competitiveness,” he said.

-- BERNAMA