BANGI, InfoSAWIT – Malaysia's crude palm oil (CPO) prices are expected to remain above RM4,000 per tonne throughout 2026, supported by elevated global crude oil prices, geopolitical uncertainties, and relatively tight supply conditions, according to the Malaysian Palm Oil Board (MPOB).
Speaking after the MPOB Palm Oil Technology Transfer (TOT) Programme 2026 in Bangi, MPOB Director-General Datuk Dr. Ahmad Parveez Ghulam Kadir said the average CPO price this year is projected to range between RM4,000 and RM4,300 per tonne.
He noted that ongoing geopolitical tensions around the Strait of Hormuz, one of the world's most strategic energy shipping routes, have continued to support global crude oil prices, indirectly strengthening demand for vegetable oils, including palm oil.
"If current market conditions persist, palm oil prices should remain at relatively strong levels, with the annual average expected to stay within the RM4,000–RM4,300 per tonne range," Ahmad Parveez said.
Beyond geopolitical factors, Malaysia's palm oil industry is still dealing with the lingering effects of the El Niño weather phenomenon, which has affected plantation productivity even after weather conditions began to normalize.
According to Ahmad Parveez, prolonged hot and dry conditions reduced the activity of the oil palm pollinating weevil, disrupting pollination and ultimately affecting fruit formation and oil extraction rates.
"We continue to monitor the post-El Niño impact. Higher temperatures do not immediately reduce production, but they can suppress pollination activity, leading to lower yields and oil recovery over time," he explained.
MPOB also highlighted Malaysia's preparations for the implementation of the European Union Deforestation Regulation (EUDR). More than 80% of smallholders in Peninsular Malaysia have already met the initial compliance requirements, while the agency aims to bring 90–95% of licensed smallholders with verified land ownership into the compliance system before the regulation takes effect.
The initiative is expected to strengthen the competitiveness of Malaysian palm oil exports by ensuring continued access to the European market as sustainability requirements become increasingly stringent. (T2)
