Tariff news pushes down palm oil prices
1 RM (Malaysian Ringgit) = 0.23 USD*
1 USD = 0.75 GBP
*Note, exchange rates are for April 16, 2025
The Malaysia Crude Palm Oil settlement price fell during the first half of April following the announcement by US President Trump of tariffs on imports from across the world. The price began the month at RM4,417/tonne ($1,001.47), which was 2.7% down on the month before. After Trump’s announcement, the price fell 3.7% on the 4th April and was down another 3.1% the next day.
By the 16th April, the price had fallen to RM4,063/tonne ($921.21), an 8.0% drop on the month-to-date and the lowest price since the beginning of October 2024. The price was 9.7% less than the month before, but very similar to the price the year before. However, it was 42.8% lower than the all-time high price of RM7,104/tonne ($1,610.70) set in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Malaysian palm oil in good position to weather tariff storm, says oil board
US tariffs will not help trade and could temporarily disrupt exports, but Malaysia could be less impacted than some of its competitors, director general of the Malaysian Palm Oil Board Dr Ahmad Parveez Ghulam Kadir said soon after President Trump’s initial tariff announcement.
A 24% tariff was imposed on Malaysian imports into the US, which compared to 32% for Indonesia and 36% for Thailand. Subsequently those rates were reduced to 10% in a 90% day pause for the higher rates for all countries affected, apart from China, which faces 145% tariffs.
Dr Parveez Ghulam Kadir said that US demand for palm oil for specialty uses such as confectionery and non-food applications means that exports between Malaysia and the US should continue to flow. The US imported 191,000 tonnes of palm oil in 2024, which represented 10% of its palm oil needs and 1.1% of Malaysia’s total palm oil exports.
Dr Parveez Ghulam Kadir added that the tariffs and proposed European deforestation laws will make consumer prices more expensive.
Higher output and imports push palm oil stocks up
Malaysian palm oil stocks rose in March for the first time in six months due to higher production and imports.
By the end of March, palm oil stocks were at 1.562 million tonnes, an increase of 3.5% on the end-of-February figure, although still down 8.8% on the March 2024 stocks, according to the Malaysian Palm Oil Board.
Malaysian production in March was 1.387 million tonnes, 16.7% more than in February, which was three days shorter. March 2024 production was similar at 1.393 million tonnes. Internal palm oil consumption was up 37.9% to 453,046 tonnes driven by strong demand during the Ramadan festival.
Palm oil imports were 82.5% more in March than February 2025 at 121 866 tonnes, which was almost five times as much as March 2025 imports. Exports were at 1.005 million tonnes, 11,000 tonnes more than February, but 24.3% less than March 2024.
Quoted in The Edge Malaysia, Anilkumar Bagani of brokers Sunvin, explained that Malaysian palm oil exports were at their lowest for the month in March because of competition from lower priced soyoil, but added:
“Palm oil’s premium over soyoil is shrinking. That’s bringing buyers back to palm oil, which could support prices, unless production jumps sharply from April onwards,”
Disclaimer: The information in this document has been obtained from or based upon sources believed to be reliable and accurate at the time of writing. The document should be for information purposes only and is not guaranteed to be accurate or complete.