CPO Prices Seen at RM4,400-RM4,600 on Tighter Supply

Crude palm oil (CPO) prices are expected to trade between RM4,400 and RM4,600 a tonne in the near term due to favourable biofuel economics and tighter global vegetable oil supply.

CIMB Securities Sdn Bhd said that elevated energy prices have improved biofuel margins, with Indonesian CPO shifting from a premium to gasoil in August 2025 to a discount in August this year.

This shift is expected to support biodiesel demand and reduce the subsidy burden of Indonesia's B50 biodiesel mandate. Additionally, unusually dry conditions and low rainfall in Indonesia and Malaysia over the past six weeks, compounded by reduced fertiliser application, raise downside risks to palm oil production from 2027.