Malaysian palm oil settlement price eases in mid-October
1 RM (Malaysian Ringgit) = 0.24 USD*
1 USD = 0.75 GBP
*Note, exchange rates are for October 15, 2025
The Malaysia Crude Palm Oil settlement price was RM4,474/tonne (US$1,074) on 15th September. There has been limited volatility in prices over the first part of the month. The price started the month at RM4,377/tonne (US$1,050), rising 4.8% by the 9th.
The latest price was 0.6% more than the month before and 5.0% more than the year before. The price was 37.0% less than the all-time high price in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Larger stocks and stronger Ringgitt weigh on prices
The Malaysian Ringgitt has strengthened over the last few days, making palm oil exports less competitive. There is also a greater supply (see next report).
The Malaysian Government expects crude palm oil prices to average between RM3,900/tonne (US$936) and RM4,100/tonne (US$984)in 2026, which would be a drop of more than 10% on the current price.
Prices could be supported by a plan by the Indonesian Government to increase the amount of palm oil in diesel. Its B50 biodiesel program is being introduced next year and will require a 50% mix of palm oil in diesel sold in the country. The plan could create 2.5 million jobs and lead to expansion of palm oil production. In 2024 Indonesia’s palm oil exports were down 17.3% on 2025 at 21.6 million tonnes.
Small drop in Malaysian palm oil production in September
Malaysian crude palm oil production fell by 0.7% in September to 1.841 million tonnes, according to the Malaysian Palm Oil Board. Palm kernel production fell 2.4% to 432,410 tonnes, with crude palm kernel oil production down 5.5% to 197,200 tonnes.
Stocks of crude palm oil were up 17.6% to 1.266 million tonnes, while processed palm oil stocks fell 2.7% to 1.095 million tonnes. Palm kernel stocks were higher, but there was a drop of 12.6% in palm kernel oil stocks to 289,460 tonnes.
Exports of palm oil rose 7.7% in the month to 1.427 million tonnes, with increases in palm kernel oil and cake shipments. Imports of processed palm oil jumped a third to 78,410 tonnes.
November Malaysia palm oil reference price slips, but duty remains at 10%
The November crude palm oil reference price has been lowered, but not to a level that means a lower export duty, which will be maintained at 10%, according to the Malaysian Palm Oil Board.
The November reference price is RM4,262.23/tonne (US$1023), which compares to RM4,268.68/tonne (US$1024.48) for the October price. Below RM2,250/tonne (US$540), there is no export duty. Between that figure and RM2,400/tonne (US$576), it is at 3%, with the rate rising. When the reference price exceeds RM4,050/tonne (US$972), the export duty is 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.