MPOC Forecasts Stable CPO Prices Amid Tight Supply
Malaysian Palm Oil Council (MPOC) expects crude palm oil prices to remain firm above RM4,600 per tonne in September due to tight supply fundamentals and geopolitical disruptions. This is according to a statement released by MPOC yesterday.
The price rally following the Malaysian Palm Oil Board's release of its supply and demand data on August 10 reinforced the view that current palm oil stock levels are not excessive. However, overall supply remains comfortable for now. The global vegetable oil market continued to be supported by biofuel demand and geopolitical uncertainty in August.
Palm oil led the gains in August, with Malaysian CPO prices rising by 3.9% during the month compared to increases of 2.7% for sunflower oil and 1.1% for soybean oil in Argentina. Crude palm oil futures forward contracts for 2027 traded on Bursa Malaysia Derivatives were above RM5,000 per tonne as of mid-August.