Malaysian Palm Oil Prices to Stay Elevated Amid Peak-Crop Period

Palm oil production in Malaysia is expected to remain firm over the next two to three months as the industry enters its peak-crop period, according to BIMB Research.

The research house remains 'overweight' on the plantation sector and notes that emerging dry conditions are unlikely to significantly impact output in the second half of 2026 (2H26), due to a biological lag between rainfall deficits and oil-palm yields.

BIMB Research forecasts that prices will remain at current elevated levels over the next three months, although stronger production and high Malaysian inventories may limit sharp near-term upside.

The Malaysian Palm Oil Board (MPOB) reported a 9.4% month-on-month increase in crude palm oil (CPO) production to 1.79 million tonnes for July 2026, lifting inventories to 2.63 million tonnes.