PALMOILMAGAZINE, KUALA LUMPUR — The Malaysian Palm Oil Council (MPOC) expects crude palm oil (CPO) prices to trade within a narrow range in January 2026, as elevated inventories and lingering pressure from weaker global crude oil prices continue to limit upside momentum, despite an anticipated seasonal improvement in demand.
In a statement released on Friday (Dec 19), MPOC projected CPO prices to hover between RM3,800 and RM4,100 per metric ton throughout January 2026. Current market prices are trading slightly below RM4,000 per ton.
MPOC noted that Malaysia’s palm oil inventories reached 2.83 million tons in November, marking the highest level in more than six years. However, the council said the figure does not necessarily signal an oversupply risk, citing structural differences in stock positions among major producing countries, particularly Indonesia.
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“Palm oil prices remain under pressure from weaker global sentiment, exacerbated by rising inventories in Malaysia,” MPOC said, as quoted by The Edge Market and cited by Palmoilmagazine.com on Saturday (Dec 20, 2025).
On the positive side, MPOC highlighted that lower prices have improved palm oil’s competitiveness against soybean oil and other rival vegetable oils, potentially supporting a near-term rebound in global demand.
For key consuming markets, MPOC expects India’s palm oil imports to recover in the first quarter of 2026, driven by stronger consumption during the wedding season. Historically, the first quarter also represents a period of lower production, while global demand is expected to strengthen ahead of the Lunar New Year and the Ramadan fasting month.
Meanwhile, MPOC added that Malaysia’s palm oil exports softened in November following the European Union’s decision to delay the implementation of its Deforestation Regulation by 12 months. The postponement eased pressure on European importers to build precautionary inventories in the near term.
Taking into account supply conditions, seasonal demand patterns, and global market dynamics, MPOC concluded that CPO prices at the start of next year are likely to remain stable, with limited room for further gains. (P2)
