Possibility of Decline in Crude Palm Oil Prices

15-Apr-2025 10:35 AM

Crude palm oil (CPO) prices are expected to decline in the second quarter of 2025 due to increasing supply and falling prices. According to the Malaysian Palm Oil Board, palm oil production in March stood at 1.39 million tonnes, up 16.8% from February.

Uncertainty in the global edible oil market continues due to tariff-related instability in global trade and supply disruptions, which could lead to further price declines.

Malaysia's palm oil exports are expected to rise, but a gas pipeline explosion in Selangor on April 1 has disrupted supply, which may slow down export momentum. This disruption could affect 10-15% of Malaysia’s total palm oil exports.