News Capsule

24-Sep-2025 12:58 PM

Palm Oil Prices Likely to Hit 3-Year High in Jan–Mar: Dorab Mistry

According to Dorab Mistry, rising biodiesel demand in Indonesia is expected to tighten supply, pushing Malaysian palm oil futures to 5,500 ringgit per ton in January–March 2026, marking a three-year high.

Mistry noted that if Indonesia continues seizing palm oil plantations and implements the B50 biodiesel program, palm oil futures could remain very bullish and reach 5,500 ringgit.

Indonesia currently mandates 40% palm oil content in biodiesel and plans to increase it to 50% next year.

Prices are expected to rise after the peak production period ends in October and could surpass 5,000 ringgit in November–December.

Palm oil production remains nearly flat as aging palm trees, minimal land expansion, and limited replanting of the oldest trees are affecting output in Indonesia and Malaysia.