Palm Oil Market Struggles to Rise

25-Nov-2025 11:54 AM

Kuala Lumpur. Palm oil prices in major supply countries are struggling to rise, but are failing to achieve much success.

The weakening of the rupee against the US dollar in India, the largest importer, is worsening the situation.

If this trend continues, crude palm oil prices could fall to near the May contract level, around 3,700 ringgit per tonne. Currently, the market is experiencing significant supply pressure coupled with weak demand.

According to trade analysts, Indonesia's mandatory use of 50 percent palm oil in biodiesel exports (B50 Program) is expected to begin in the second half of next year, and until then, large surplus stocks in Malaysia and Indonesia could continue to weigh on palm oil prices. Malaysian palm oil exports are trading at a steady 20 percent compared to last month, making it unlikely for prices to rise.

Demand for palm oil in India has weakened. Although the long-term outlook suggests a bullish outlook, the market faces some headwinds in the near term. Palm oil prices currently appear to be quite low, so a recovery could begin when demand strengthens.

If soybean oil prices rise, the palm oil market could receive some support and reach 4,250 ringgit per tonne. China has begun purchasing soybeans from the United States.

The export offer price for crude palm oil (CPO) for India is currently hovering around $1,100 per tonne, including shipping charges.

However, there is a lack of buyers at this price level, limiting trade. The rupee has weakened against the dollar.