MPOC expects crude palm oil to trade at between 3,800 and 4,100 Ringgit in January.
The Malaysian Palm Oil Council announced on Friday that the price of crude palm oil is expected to range between 3,800- 4,100 ringgit (932- $1005) during January. This will be due to low production levels in the first quarter and increased demand for the Lunar New Year (Lunar New Year) as well as the Ramadan holidays.
Malaysian palm oil exports will rise to 16,2 million metric tonnes in 2026. Production is forecast to fall to 19,7 million tons, as oil palm trees are expected to enter a "resting phase" following a strong performance in 2025.
Malaysia, which is the second largest palm oil producer in the world, expects to reach a production of 50,000 tonnes this year.
20 Million
After two record-breaking months of production, the first time in history that the number of tons produced has exceeded 100.
MPOC stated that lower crude oil prices, and an abundance of oilseeds will likely limit any sustained price recovery. Prices are expected to remain within a narrow trading range.
It said that "Global soybean production will stagnate in 2026 at 424 millions tons, but abundant soybean supplies are expected continue to weigh on the market sentiment as oilseeds remain plentiful."
The industry group said that it expected India's imports of palm oil to increase?between January-March, supported by a seasonally higher demand for weddings in India. The industry body said that palm oil had become more 'competitive' in China and a sharp decline in its premium over soyabean oil could provide an opportunity for buyers of the product to build up their inventories.
The MPOC said it was not concerned about an oversupply, even though Malaysian stocks were high. This is because inventories of Indonesia's leading producer are expected to drop by the end the year.
The Malaysian Palm Oil Board, a government agency, released data that showed Malaysian palm oil production.
Stocks
In November, exports reached 2.84 million tons, their highest level since March 2019.
The rising inventories may weigh on the benchmark Malaysian futures which are currently trading at their lowest level in six months.
(source: Reuters)
