Crude Palm Oil Prices Expected to Remain Above $1,154 Through 2026

Crude palm oil prices are expected to remain above $1,154 per metric ton through the rest of 2026 due to weather uncertainties and favorable energy markets. The Malaysian Palm Oil Council (MPOC) stated that Malaysian exports are projected to remain stable at around 16 million tons in 2027.

The MPOC cited dry weather associated with El Niño as a concern for palm oil production, particularly in Malaysia and Indonesia where rainfall was significantly below average. In July, Indonesian rainfall was 20% below average, while in August it was 60% below average. Malaysian rainfall was also impacted, being 30% below average in August.

The MPOC noted that biofuel blending margins had improved following the shutdown of Saudi Arabia's East-West pipeline facilities and shipping interruptions in key straits. However, a decline in energy prices or further build-up of stock could negatively impact palm oil prices.