InfoSAWIT, KUALA LUMPUR – The Council of Palm Oil Producing Countries (CPOPC) has predicted that palm oil prices will range between RM4,000 and RM5,000 per ton in 2025, driven by stagnant production in key markets such as Indonesia and Malaysia.

“With global demand for palm oil rising, stagnant production is expected to result in supply shortages, ultimately pushing prices higher,” said CPOPC Deputy Secretary-General Datuk Nageeb Wahab, as quoted by InfoSAWIT from Bernama on Wednesday (11/12/2024).

Nageeb explained that the current price of around RM5,000 per ton is likely temporary, influenced by flooding in Malaysia, which has fueled bullish market sentiment.

Factors such as aging plantations, unpredictable weather, and limited expansion of new plantation areas contribute to production stagnation. These challenges are expected to strain global supply further, driving palm oil prices higher.

Regarding CPOPC membership, Nageeb noted that full members include Malaysia, Indonesia, Honduras, and Papua New Guinea. Meanwhile, Colombia, Ghana, Nigeria, and the Democratic Republic of Congo hold observer status.

Efforts are underway to invite Thailand, the world’s third-largest palm oil producer, to become a full member. If Thailand joins, CPOPC member countries would control approximately 93–95% of global palm oil production, strengthening their position in the international market.

“This would give us a much stronger voice,” Nageeb concluded. (T2)