Malaysian Palm Oil Prices Hold Firm Above RM4,600 Amid Geopolitical Disruptions

Malaysian palm oil prices are expected to remain above RM4,600 per tonne in September due to tightening supply fundamentals and persistent geopolitical disruptions. The Malaysian Palm Oil Council (MPOC) said crude palm oil futures forward contracts for 2027 traded on Bursa Malaysia Derivatives were above RM5,000 per tonne as of mid-August.

Genting Plantations, one of Malaysia's major plantation groups, posted a net profit of RM140.9 million in the second quarter ended June 30, down from RM192.6 million a year earlier. The company expects fresh fruit bunch (FFB) production to maintain positive momentum in the near term, supported by additional harvesting areas and mature age profiles.

The MPOC flagged several downside risks, including easing Black Sea logistical bottlenecks and lower energy prices as geopolitical tensions improve. Malaysia's palm oil production typically peaks in September or October before declining in the fourth quarter.