Malaysian palm oil price jumps after Middle East tension
1 RM (Malaysian Ringgit) = 0.24 USD*
1 USD = 0.74 GBP
*Note, exchange rates are for June, 16 2025
The Malaysia Crude Palm Oil settlement price was RM4,103/tonne (US$985/tonne) on the 16th June, up 4.8% on the price on Friday the 13th June and the first time it was above RM4,000/tonne (US$960/tonne) since the 25th April 2025. The increase in prices was in line with the rise in crude oil prices following missile attacks between Israel and Iran. Vegetable oil prices were also supported by news that the US proposes to increase the amount of biofuel blended into fuel.
Prices were already a little higher at the start of the month, reaching above RM3,900/tonne (US$936/tonne) for the first time in more than two weeks on the 3rd June. They then dipped before strengthening on the 13th June. The latest price of RM4,103/tonne (US$985/tonne) was 7.6% more than the price the month before, 3.0% more than the year before, but 42.2% less than the all-time high in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Missile attacks and biofuel target support prices
Crude oil prices jumped by 7% following the missile attacks between Israel and Iran, with the price of alternative vegetable oils increasing in response. Crude oil values did then slip, but vegetable oils continued to hold onto gains and even edged higher.
On Friday, the 13th June, the US administration proposed an increase in the biofuel mix that oil refiners must use over the next two years. The plan would require a record 90.9 billion litres of biofuel a year to be mixed with conventional diesel and gasoline. That would be 8% more than the 2025 target.
The move was aimed at supporting US oil crop production, but gave support to global prices too.
“We are creating a new system that benefits American farmers,” Environmental Protection Agency Administrator Lee Zeldin said in a release. “We can no longer afford to continue with the same system where Americans pay for foreign competitors.”
Malaysia palm oil stocks at eight-month high
Malaysia palm oil stocks were at their highest level for eight months in May, driven by increased production.
Stocks stood at 1.990 million tonnes at the end of May, up 6.7% on the previous month, according to the Malaysian Palm Oil Board (MPOB). Production was up 5.1% over the month to 1.772 million tonnes, the third month in a row where output rose. Palm kernel production was up 2.8% to 420,658 tonnes.
Exports of palm oil were up 25.6% on the month to 1.387 million tonnes, while imports rose 18.3% to 68,971 tonnes.
Exports to India are expected to remain strong after it halved the basic import tax on oil imports to 10%.
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.