22/07/2026 11:41 AM

CPO Prices Seen Between RM4,400-RM4,650 Per Tonne In August -- MPOC

KUALA LUMPUR, July 22 (Bernama) -- Crude palm oil (CPO) prices are expected to trade between RM4,400 and RM4,650 per tonne in August, supported by Indonesia’s B50 biodiesel implementation from July, firmer energy markets and improved biodiesel economics.

The Malaysian Palm Oil Council (MPOC) said renewed United States (US)-Iran tensions pushed gasoil prices up by 30 per cent between early and mid-July, making the fuel more expensive than both palm oil and soybean oil.

"However, further price gains are likely to be limited by softer demand and elevated vegetable oil stocks in major consuming markets," it said in a statement. 

MPOC also said Malaysia’s palm oil supply outlook remains favourable in the near term, as Malaysian Palm Oil Board (MPOB) data showed stable production in the first half of 2026, while stocks increased to 2.5 million tonnes in June. 

The council said Malaysia’s palm oil production rose eight per cent month-on-month (m-o-m) to 1.63 million tonnes in June 2026, reflecting the seasonal production upcycle which typically starts in March. 

However, it said June 2026 output remained three per cent lower than in June 2025, marking the fourth consecutive month of year-on-year decline. 

"Exports also rose by 6.1 per cent m-o-m to 1.20 million tonnes in June 2026, although volume remained four per cent below June 2025. 

"The weaker performance was due to softer oils and fats consumption in major markets such as China and India amid the lingering impact of the West Asia conflict," it said. 

Meanwhile, MPOC said oilseed production is expected to continue expanding globally, but growth in the three major oilseeds is forecast to slow in the 2026-2027 season. 

It said combined soybean, sunflower seed and rapeseed output is projected to increase by only 16.5 million tonnes from a year earlier, well below the average annual increase of 22.7 million tonnes recorded over the past four years. 

"Global reliance on soybean oil, sunflower oil and rapeseed oil has increased since 2019 amid tighter exportable palm oil supply from Southeast Asia. 

"Slower oilseed production growth, together with continued expansion in vegetable oil demand, particularly from the biofuel sector, is expected to keep vegetable oil prices supported," it said.

Despite these longer-term supportive developments, MPOC noted that near-term vegetable oil demand remains moderate across major importing markets. 

The council also said vegetable oil stocks in India remained elevated despite the slowdown in imports, pointing to weaker consumption amid inflationary pressure. 

"Nevertheless, restocking ahead of Deepavali may support demand, as India normally imports around 30 per cent of its annual vegetable oil requirements between July and September. 

"Palm oil remains the most competitively priced major vegetable oil, making it well positioned to benefit from the seasonal restocking ahead of Diwali," it added. 

-- BERNAMA

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