Stable palm oil prices in the first half of September
1 RM (Malaysian Ringgit) = 0.24 USD*
1 USD = 0.73 GBP
*Note, exchange rates are for September 15, 2025
The Malaysia Crude Palm Oil settlement price was at RM4,445/tonne (US$1,067) on the 15th of September. Prices have been very stable for the first half of the month, ranging from a low of RM4,377/tonne (US$1,050) on the 1st of September to RM4,482/tonne (US$1,076) on the 8th of the month, a 2.4% difference.
The latest price is 1.8% less than a month ago but 14% higher than it was a year ago, before prices surged in late September 2024 and into October. The price on the 15th of September was 37.4% less than the all-time high price in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Strong Indian demand helps Malaysian and Indonesian palm trade
The Malaysian and Indonesian palm oil markets were helped by strong demand from India in August ahead of major religious festivals. Indian palm oil imports were at their highest monthly levels for more than a year. Palm’s competitiveness against other vegetable oils helped it win Indian business.
In the month, palm oil imports rose by 15.8% to 990,528 tonnes, while soyoil imports dropped by 25.3% to 367,917 tonnes and sunflower oil imports rose by 28.5% to 257,080 tonnes, reports Reuters.
India is the largest importer of palm oil in the world and its demand is key to the Malaysian and Indonesian palm oil industries.
Stronger palm oil production and reduced exports increase Malaysian stocks
There was a 2.3% increase in Malaysian crude palm oil production between July and August 2025 at 1.855 million tonnes, according to the Malaysian Palm Oil Board. Palm kernel production rose 2.7% to 443,077 tonnes, while crude palm kernel oil output was 4.4% down at 208,473 tonnes, with a 4.6% increase in palm kernel cake oil production to 227,473 tonnes.
Stocks of crude palm oil rose by 5.4% to 1.077 million tonnes, with a 3.0% increase in processed palm oil stocks to 1.126 million tonnes, resulting in total palm oil stocks of 2.202 million tonnes, which was 4.2% more than in July. Palm kernel stocks rose 7.3% to 147,658 tonnes, with palm kernel oil stocks up 3.1% to 331,052 tonnes. Palm kernel cake stocks were 15.8% higher at 309,796 tonnes.
The increase in production contributed to the growth in stocks, alongside a drop in exports. Palm oil exports fell 0.3% to 1.325 million tonnes, with a 30.8% drop in palm kernel cake shipments, a 7.3% fall in oleochemical exports and a 37.3% decline in biodiesel exports. Palm kernel cake oil exports rose 22.9%.
Stronger Ringgit trims Malaysian palm oil prices
The value of currency is important for an exporting nation such as Malaysia. Last week, there was a small drop in futures prices after a strengthening of the Ringgit against the US dollar of 0.31%. However, the impact was limited by demand for vegetable oils after an increase in crude oil prices. Currently, a Ringgit is worth US$0.24. A year ago, it was US$0.23. Its lowest value over the last five years was US$0.20 in September 2022, and its highest value was US$0.25 in December 2020.
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.