Kuala lumpur: The Malaysian Palm Oil Board (MPOB) anticipates that the average price of crude palm oil (CPO) will maintain its strength, ranging between RM4,000 and RM4,300 per tonne this year, supported by current global petroleum prices.
According to BERNAMA News Agency, MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir stated that CPO prices are expected to continue benefiting from the prevailing global oil prices due to ongoing tensions in the Strait of Hormuz. He made this announcement during a press conference at the MPOB 2026 Palm Oil Technology Transfer (TOT) Programme.
Ahmad Parveez explained that the tensions in the Strait of Hormuz have directly impacted global petroleum supplies, subsequently driving up palm oil and other vegetable oil prices due to their interconnectedness. He also highlighted a significant challenge confronting the palm oil industry-specifically, the lingering effects of the El Ni±o phenomenon, which is predicted to limit production by affecting oil palm pollination.
The MPOB director-general elaborated on the impact of El Ni±o, noting that it brings hotter weather and reduced rainfall, which do not yield immediate effects but have long-term consequences on the pollination activities conducted by oil palm weevils. This climatic condition results in lower pollination rates and decreased oil extraction yields due to reduced activity of these pollinating insects in excessively hot weather.
In addressing the European Union Deforestation Regulation (EUDR), Ahmad Parveez mentioned that over 80 percent of smallholders in Peninsular Malaysia are already prepared to comply with the regulation's requirements. He emphasized MPOB's target to incorporate 90-95 percent of smallholders, who possess valid licenses and clear land ownership status, into the compliance system before the EUDR implementation for smallholders commences in the middle of next year.
Ahmad Parveez assured that incorporating at least 90-95 percent of eligible smallholders into the compliance system would enable their palm oil to be exported to the European Union market without any obstacles.