InfoSAWIT, KUALA LUMPUR – The Malaysian government projects that the average price of Crude Palm Oil (CPO) in 2026 will be in the range of RM 3,900 to RM 4,100 (approximately US$925–970) per ton, lower than this year's price. This projection is driven by an increase in global production and rising supplies of competing vegetable oils such as soybean and sunflower oil.
In the Economic Outlook 2026 report, released concurrently with the 2026 National Budget on Friday (10/10), the government stated that the palm oil sub-sector is expected to see a boost in CPO production next year. This increase is attributed to higher Fresh Fruit Bunch (FFB) yields and an improvement in the Oil Extraction Rate (OER).
According to the report, favorable weather prospects and the expansion of mature plantation areas are supporting the production increase. Furthermore, improved harvesting practices and wider use of mechanization technology are expected to enhance efficiency and reduce yield losses.
On Tuesday (14/10), CPO futures contracts for December 2025 delivery on the Bursa Malaysia Derivatives Exchange fell by RM 18 per ton, or 0.4%, to RM 4,481 (US$1,061.09) per ton at the midday break, extending a two-session correction trend.
The government is optimistic that the palm oil sub-sector will remain a key pillar of Malaysia's agricultural economy, despite facing the challenges of global price fluctuations and competition from other vegetable oils. (T2)
