Palm oil prices end 2025 on a weak note
1 RM (Malaysian Ringgit) = 0.25 USD
1 USD = 0.74 GBP
*Exchange rates calculated and market prices reported on January 6, 2026
Crude Palm Oil
Average World Bank December 2025 palm oil price
US$1,007/tonne (+US$26 in month)
Malaysia palm market
Settlement price hovers around US$1,000/tonne mark
Malaysia CPO settlement prices fell below RM4,000/tonne (US$1,000) in the second half of December, before a small recovery and another dip in early January.
The price at the end of December was RM4,051/tonne (US$1,013), which was RM151/tonne (US$38) higher than the low seen on December 16, marking the lowest price since June 2025. There was then another drop in early January when the price dropped below RM4,000/tonne (US$1,000) again.
The end of Decembers price was 0.1% less than the beginning of the month. It was 9.8% less than the price at the beginning of 2025 and 42.9% less than the all-time high price in April 2022. The highest price in 2025 was RM4,618/tonne (US$1,154) on the 12th February, and the lowest was RM3,731/tonne (US$933) on the 7th May.
Malaysia CPO Settlement Price RM
Vegetable oil
December global palm oil prices slip but make small gains over the year
Global average palm oil prices dropped 0.2% in December to US$981/tonne, according to the World Bank. The average price for the year was up 4.5% to US$1,007/tonne. Palm kernel oil prices rose 49% in the year to US$2,103/tonne, the highest on record. Soybean oil prices were 11.5% up over the year to US$1,140/tonne.
In its latest vegetable oil report, the US Department of Agriculture raised its production forecasts for Canadian and Australian rapeseed, with extra Nigerian peanut oil production too. That increase is expected to more than outweigh an increase in sunflower seed production in Ukraine and Russia. Global stocks have increased because of greater Canadian rapeseed production.
Global vegetable oil trade is lower on Ukraine and Russia sunflower seed oil exports, but not outweighed by higher Russia rapeseed oil and China soybean oil exports.
The season-average farm price for soybeans is forecast at US$10.50/bushel.
In its World Agricultural Supply and Demand Estimates report, the USDA put global oilseed production at 690.29 million tonnes in 2025/26, up from 684.51 million tonnes in 2024/25, with stocks up from 141.63 million tonnes to 143.60 million tonnes.
World production of vegetable oil in 2025/26 is projected at 233.29 million tonnes, up from 229.56 million tonnes the year before, with stocks down from 30.21 million tonnes to 29.82 million tonnes.
Average world soybean oil prices in US$/tonne
Rapeseed oil
Average world rapeseed oil price in US$/tonne
Sunflower oil
Average world sunflower oil prices in US$/tonne
Shipping update
Costs at the lowest point in the last year
The final Drewry World Container Index (WCI) of 2025 was at US$2,213 per 40-foot container. That was a 1% percent increase on the week and the highest cost since August 2025. The index fell by 41.8% percent over the year, with the highest price of 2025 US$3,986/container in mid-January. Values fell to US$2,076 in May before a recovery to US$3,543. The cost then fell to its lowest of US$1,651 in October before rising again.
From the 25th December 2025 Drewry World Container Index report:
- The Drewry World Container Index (WCI) rose 1% to $2,213 per 40-foot container, marking the fourth consecutive weekly increase, mainly due to rate hikes on Transpacific and Asia–Europe trade routes.
- Spot rates on the Shanghai–Genoa increased 3% percent to $3,427 per 40-foot container, while those on the Shanghai–Rotterdam rose 2% percent to $2,584. Spot rates on the Asia–Europe trade route have maintained stable or rising rate levels for four consecutive weeks. This strength is driven by a shift in seasonal patterns. Over the last three years, Drewry has recorded a double-digit MoM demand growth in December, establishing strong year-end volumes as the ‘new normal’. As carriers are already recording early bookings ahead of the impending Lunar New Year in February 2026, Drewry expects further slight rate increases next week.
- Following last week’s double-digit rise, spot rates from Shanghai to New York and Shanghai to Los Angeles held steady this week. Drewry expects Transpacific rates to remain stable in the next week.
Source: Drewry Supply Chain Advisors
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.