Palm Oil Prices

09-12-2025 - Over the past month, the price of palm oil has decreased from 4,149.0 MYR/t to 4,093.0 MYR/t, indicating a slight easing in the market for this commodity. This decline may reflect shifts in supply or demand dynamics. The forecast predicts a further decrease to 4,069.66 MYR/t, a modest drop of 0.6% from the current price, suggesting a stable trend with minimal risk in raw material pricing.

Despite this stability, there is upward pressure on raw material prices due to demand, supply, and technical factors, significantly influenced by the global economy. However, this is somewhat counterbalanced by negative pressures from exchange rates and seaborne trade flows.

The forecast anticipates a decline in the BMD Palm Oil market, with prices expected to reach 4,069.66 MYR/t in the coming month. This outlook is supported by external analyses, which suggest potential price decreases due to increased supply and weaker demand. For instance, Argus Media reports that palm oil prices are likely to weaken in the first half of 2025, with Bursa Malaysia crude palm oil futures projected to fall to between 4,000-4,200 MYR/t by July. This anticipated decrease is attributed to rising output and softer demand.

Overall, the forecast and external analyses align, indicating a downward trend in palm oil prices driven by increased supply and reduced demand.