PALMOILMAGAZINE, KUALA LUMPUR – The Council of Palm Oil Producing Countries (CPOPC) anticipates that palm oil prices will range between RM4,000 and RM5,000 per ton in 2025, driven by stagnant production in major markets such as Indonesia and Malaysia.
“As global demand for palm oil increases, stagnant production is expected to create supply shortages, ultimately pushing prices higher,” said CPOPC Deputy Secretary-General Datuk Nageeb Wahab, as quoted Palmoilmagazine.com from Bernama on Wednesday (11/12/2024).
He explained that the current price, approximately RM5,000 per ton, is likely temporary and influenced by ongoing floods in Malaysia, which have bolstered bullish market sentiment.
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Key factors such as aging plantations, unpredictable weather, and limited expansion into new plantation areas contribute to production stagnation. This scenario is expected to further strain global supply and drive palm oil prices higher.
Discussing CPOPC membership, Nageeb highlighted that full members currently include Malaysia, Indonesia, Honduras, and Papua New Guinea. Meanwhile, Colombia, Ghana, Nigeria, and the Democratic Republic of Congo remain observer members.
Efforts are also underway to invite Thailand, the world’s third-largest palm oil producer, to become a full member. Should Thailand join, CPOPC member countries would control approximately 93 to 95 percent of global palm oil production, strengthening their position in the international market.
“This will give us a stronger voice,” concluded Nageeb. (P2)
