Palm Oil Prices May Hit Two-Year Low as Supply Rises, India's Imports Decline

07-May-2025 03:06 PM

Palm Oil Prices May Hit Two-Year Low as Supply Rises, India's Imports Decline
★ Palm oil prices may drop to a two-year low of RM3,500 per tonne between June and November 2025 – Dorab Mistry, Globoil Dubai.
★ An increase in production in Malaysia and Indonesia is leading to a stock build-up, raising the possibility of a price decline.
★ The benchmark palm oil contract for July delivery has fallen to RM3,754 per tonne, after reaching a two-year high of RM5,202 in November.
★ Palm oil had earlier become more expensive than soybean oil, leading to a loss in market share. However, the recent price drop has restored some competitiveness.
★ India, a major importer of palm oil, saw palm oil’s share in edible oil imports fall to 43% from November to March, down from 61% a year earlier.
★ Vegetable oil imports in India may decline in 2025 as oilseed crushing increases due to higher production, and demand for mustard meal from China rises.
★ After China imposed a 100% import duty on Canadian rapeseed meal, it increased purchases from India.