CPO Prices Hold Firm Amid Tighter Supply Projections

Crude Palm Oil (CPO) prices are holding firm despite rising Malaysian inventories as the market looks beyond near-term supply to the risk of tighter conditions in 2027.

Rising El Niño conditions, Indonesia's B50 biodiesel mandate and disruptions to competing vegetable oils have prompted analysts to raise their price forecasts.

The key commodity has gained more than 15% since the start of the year, while Malaysia's average CPO price stood at RM4,493 per tonne last month, up 9.3% year on year for the first seven months of 2026, CPO averaged at RM4,388 per tonne.

SD Guthrie expects CPO to trade between RM4,600 and RM5,000 per tonne for the rest of the year and reach as high as RM5,200 per tonne in the first quarter of 2027 if El Niño conditions develop.