InfoSAWIT, KUALA LUMPUR — Crude palm oil (CPO) prices are expected to remain firmly supported in December 2025, hovering between RM4,100 and RM4,200 per tonne, with potential to climb to RM4,500, according to the Malaysian Palm Oil Council (MPOC).

MPOC attributed the positive outlook to stable import demand ahead of Chinese New Year and Ramadan, while policy uncertainties in Indonesia— the world’s top palm oil producer—continue to underpin market sentiment.

“Market reports indicate that Indonesia may revise export duties to secure sufficient domestic feedstock. The timeline for escalating the biodiesel mandate to B45 or B50 will influence 2026 export volumes,” MPOC said in a statement published by InfoSAWIT on Saturday (22/11/2025).

Malaysia’s Industry Strengthens Production and Sustainability Measures

MPOC highlighted Malaysia’s progress in transforming its palm oil sector, especially in converting agricultural waste into value-added products—an effort aligned with the country’s net-zero 2050 commitments and SDGs 7, 12, and 13.

The council noted the positive impact of MSPO certification and industry-level net-zero targets, although further technological innovation is needed to accelerate efficiency and cost-effectiveness.

Malaysia’s palm oil production surged in October, rising 11% to 203,000 tonnes—the highest level in a decade. Sabah posted the largest output increase at 19.5% (72,000 tonnes), followed by Sarawak (14.6% to 61,000 tonnes) and Peninsular Malaysia (6.5% to 68,000 tonnes).

Exports also strengthened, climbing 18.6% or 265,000 tonnes to 1.69 million tonnes. Sub-Saharan Africa recorded the sharpest increase with a record 577,000 tonnes, representing 34% of Malaysia’s total exports. Shipments to China also rose to a five-month high of 110,000 tonnes.

Despite exports outpacing production, Malaysia’s CPO stocks rose to 2.46 million tonnes—the highest level since April 2019—due to weaker domestic consumption.

From January to October 2025, Malaysia imported 708,000 tonnes of palm oil from Indonesia, a surge of 266% compared to the same period a year earlier.

Globally, palm oil prices fell 4% in November as inventories swelled. Prices of sunflower, soybean, and rapeseed oils remained relatively steady, widening palm oil’s price discount.
By mid-November, CPO traded at a discount of US$120 to sunflower oil, and US$48 and US$34 to soybean and rapeseed oils respectively. (T2)