Malaysia palm oil price reaches two-month high
1 RM (Malaysian Ringgit) = 0.24 USD*
1 USD = 0.74 GBP
*Note, exchange rates are for July 15, 2025
The Malaysia Crude Palm Oil settlement price was RM4,240/tonne (US$1,1017) on the 15th June. That was the highest price since early April 2025. Vegetable oil prices were given a boost in June by the increase in crude oil prices following tension in the Middle East. The crude oil price has now slipped, but palm oil values have remained stronger.
Prices dipped below RM4,000/tonne (US$960) at the beginning of July, before rising steadily. The latest price is 3.3% more than the month before, 7.9% more than the year before, but 40.3% less than the all-time high set in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Profit taking by traders in a relatively strong palm oil market
The rise in palm oil prices did lead to traders selling to lock in profits, but there is some strength in the underlying market.
Soyoil prices have been trading higher, with another rebound in crude oil prices also giving support to vegetable oils that can be used for biodiesel. Malaysian palm oil prices have also been supported by a weaker Malaysian Ringgit.
The US’s threat to impose tariffs of up to 100% on Russian goods is expected to tighten crude oil supplies and give support to prices.
Malaysia palm oil stocks at 18-month high
Malaysian crude palm oil production was 4.5% lower in June than May at 1.692 million tonnes, according to data from the Malaysian Palm Oil Board (MPOB). Total stocks of palm oil were up 2.4% to 2.030 million tonnes, with crude palm oil stocks 5.4% less at 1.042 million tonnes and processed palm oil stocks up 12.2% to 988,840 tonnes. The total palm oil stock figure was the highest in 18 months.
Trade in palm oil, palm kernel and palm oil chemicals and biodiesel were all down in June compared to May. Palm oil exports fell 10.5% to 1.259 million tonnes, with a 27.6% drop in palm kernel oil to 86,173 tonnes and 1.8% decline in palm kernel cake shipments to 189,774 tonnes. Oleochemical exports were 12.9% down at 202,829 tonnes with biodiesel shipments plunging by 91.5% to 2,792 tonnes.
Crop inspectors Intertek Testing Services estimated that Malaysian palm oil exports between the 1st and 10th of July were 5.3% higher than the same period in June, with rival inspection company AmSpec Agri Malaysia estimating a 12.0% increase.
Small increase in Malaysian palm oil production in 2025/26 expected
After a 1.6% drop in 2024/25 Malaysian palm oil production, output it expected to edge up by 0.5% to 19.5 million tonnes in 2025/26, according to BMI Country Risk and Industry Research. It also expects domestic Malaysian palm oil consumption to fall by 2% in 2024/25 to 3.8 million tonnes in 2025/26.
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.