Malaysian palm oil prices slide
1 RM (Malaysian Ringgit) = 0.24 USD*
1 USD = 0.76 GBP
*Note, exchange rates are for December 15, 2025
The Malaysia Crude Palm Oil settlement price has slid in the first half of December. It started the month at RM4,084/tonne (US$980), before increasing a little. From the 5th of the month, it started to fall and ended at RM4,011/tonne (US$963) on the 15th. That is a drop of 2.7% in the month, 19.8% lower than a year ago and 43.5% lower than the all-time high in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Weaker veg oil price put pressure on palm
Malaysian palm oil prices have come under pressure amid lower prices for alternative oils and a stronger Ringgit.
“The palm oil futures were still trading in range between 4,000 to 4,100 ringgit (US$960-US$984), tracking Dalian weakness and ringgit strength,” a Kuala Lumpur-based trader told Business Recorder.
The price of soy oil and palm oil on the Chinese Dalian exchange dropped by almost 1% on Monday, but prices may gain some support from crude oil prices which have edged up following tension between the US and Venezuela.
Malaysian prices were under pressure because of a strengthening Ringgit against the dollar. A year ago, a US dollar would have bought RM4.45, now the Malaysian currency is 8.1% stronger and a dollar only buys RM4.09.
Lower exports are also weighing on Malaysian palm oil prices. Shipments in the first half of December were down by 16.4% according to inspection company AmSpec Agri Malaysia, with a 15.9% drop according to rival company Intertek Testing Services.
Malaysian palm oil production and exports slip in November
Malaysian crude palm oil production fell in November by 5.3% to 1.935 million tonnes, according to the Malaysian Palm Oil Board. Palm kernel production dropped 7.4% to 442,266 tonnes, with crude palm kernel oil production down 1.3% to 207,679 tonnes.
Stocks of crude palm oil were up 17.6% to 1.743 million tonnes, while processed palm oil stocks rose 6.5% to 1.092 million tonnes. Palm kernel stocks were 1.2% lower, and there was an increase of 5.4% in palm kernel oil stocks to 314,840 tonnes.
Exports of palm oil fell 28.1% in the month to 1.213 million tonnes, with decreases in palm kernel oil and oleochemical shipments. Imports of processed palm oil were down 36.1% to 23,176 tonnes.
Record Malaysian palm oil production of 20 million tonnes expected in 2025
Malaysian palm oil production is expected to be above 20 million tonnes in 2025, the first time that figure has been reached, according to data from the Malaysian Palm Oil Board quoted by Reuters. The abundance of stocks is expected to put further pressure on prices.
Stocks of palm oil were at six and a half year high in November and are expected to increase further in December following weak exports. Shorter supply of other vegetable oils globally could support Malaysian exports and prices in 2026.
The increase in production has been driven by a larger palm area. Plantations have increased by 11% over the last 20 years and are at a record 27.9 million hectares.
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.