CPO Prices Likely to Remain Firm in July

20-Jun-2026 11:59 AM

Kuala Lumpur: Citing factors such as complex supply conditions in Indonesia (the leading producer and exporter), the rising threat of El Niño, and improving vegetable oil trading activity in the global market, the Malaysian Palm Oil Council (MPOC) has projected that Crude Palm Oil (CPO) futures prices will remain firm in the range of 4,400 to 4,650 ringgit per tonne in July. According to the Council, while the El Niño weather cycle is not expected to impact oil palm plantations in Indonesia and Malaysia through June, the risk is likely to increase from July or August.

Indonesia is set to implement the B50 program on July 1, which will raise the mandatory palm oil blending level in biodiesel production to 50 percent. This move could limit the stock of palm oil products available for export.

The MPOC notes that significant vegetable oil stocks currently exist in major importing countries, making a massive surge in palm oil demand and prices unlikely; however, the market could trade higher in July compared to June. On May 28, the price stood at 3,899 ringgit per tonne.