Kuala lumpur: Crude palm oil (CPO) prices are forecasted to reach an average of RM4,300 per tonne in 2025 before easing to approximately RM4,000 in the following two years, according to Kenanga Investment Bank Bhd (Kenanga IB).

According to BERNAMA News Agency, Kenanga IB reported that CPO prices were robust in the first quarter of 2025, trading at levels above soybean oil prices as Indonesia’s yields showed recovery from a challenging 2024. Despite a subsequent softening of CPO prices, they remained higher than initially anticipated due to tight supply, even with a year-on-year improvement.

Kenanga IB anticipates a global edible oil supply increase of two to three per cent year-on-year in 2026. This additional supply is expected to be smoothly absorbed due to a consistent annual demand growth of three to four per cent. Consequently, inventory levels are not projected to improve significantly in 2026 and potentially into 2027, supporting the expectation of firm CPO prices during this period.