Palm oil expected to hold at RM3,900 amid tight supply

Palm oil prices are anticipated to stay firm at around RM3,900, supported by the rebound in soybean oil prices, which improves palm oil’s competitiveness. The Malaysian Palm Oil Council (MPOC) expects Malaysia’s palm oil stocks to keep increasing from April onwards, though the rise will likely be moderate due to sluggish year-on-year production growth, especially in Sabah. It noted that palm oil production in Sabah dropped by 10 per cent between January and March 2025, marking the lowest level recorded in the past five years. “This production shortfall will limit inventory accumulation and help support palm oil prices. “The ongoing decline in palm oil production in Sabah remains a concern and is likely to limit any significant production recovery in the coming months. “Despite these supportive factors, a strong rally in vegetable oil prices is unlikely, as escalating trade conflicts and soft crude oil prices imply higher risk and price volatility,” it said in a statement. ...