Malaysia palm oil prices seen range-bound in Jan on supply-demand balance
This story was originally published at 15:29 IST on 24 December 2025
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MUMBAI – Malaysian palm oil prices are likely to remain range-bound between 3,800 and 4,100 Malaysian ringgit per tonne in January, supported by a balanced supply-demand outlook, the Malaysian Palm Oil Board said, citing the Malaysian Palm Oil Council. The first quarter is typically the seasonal low for production, while demand is likely to refine ahead of the lunar New Year and Ramadan, supporting a drawdown in stocks, the board said.
"However, spillover weakness from the energy market, coupled with abundant oilseed supplies, is likely to cap any sustained price recovery, keeping prices within a narrow trading range," the board quoted the council as saying.
"Looking ahead to 2026, Malaysia's palm oil exports are forecast to rise to 16.2 million tonnes while production is expected to ease to 19.7 million tonnes as oil palm trees enter a resting phase following solid performance in 2025," it said.
Malaysian palm oil exports in November fell short of expectations at 1.21 million tonnes, largely because of weaker demand from sub-Saharan Africa, which had imported nearly 600,000 tonnes in October. Malaysia's palm oil production in November also fell by 108,000 tonnes, or 5.3% month-on-month, to 1.93 million tonnes.
Demand from the European Union eased after the bloc announced a 12-month postponement in implementing the European Union Deforestation Regulation, eliminating the need for importers to build precautionary inventories. At the same time, robust production and softer exports lifted Malaysian palm oil inventories to 2.83 million tonnes in November, the highest level since March 2019, according to the palm oil board, citing data from the palm oil council. End
Reported by Udita S. Jaiswal
Edited by Rajeev Pai
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