Kuala Lumpur: Crude palm oil (CPO) prices are expected to remain in the range of RM3,750 to RM4,050 per tonne in May before gradually recovering, according to the Malaysian Palm Oil Council (MPOC). The council attributed this price range to the subdued global vegetable oil market, which lacks strong bullish drivers, and weak energy prices that are affecting biodiesel margins in major producing countries.

According to BERNAMA News Agency, the MPOC highlighted that from June to September, global vegetable oil import demand is anticipated to favor palm oil, which could limit further downside pressure on prices. The volatility in the vegetable oil and energy markets over the past two months has been driven by escalating trade tensions between the United States and China, as well as the decision by the Organisation of the Petroleum Exporting Countries (OPEC) to increase crude oil output starting in June.

The council reported that palm oil prices have declined by 18 percent since April, while soybean oil prices have seen an increase of seven percent. Additionally, crude oil prices have dropped sharply, showing a 20 percent decrease over the same period.

The MPOC also noted a significant increase in Malaysian palm oil production in April, which rose by 298,000 tonnes compared to the previous month. This increase was supported by delayed harvesting activities in early March due to the monsoon season. The rise in production during April is expected to be followed by a moderate increase from May to September, primarily due to the high base effect.

In line with the increased production, palm oil stocks saw a rise of 303,000 tonnes, reaching their highest level in six months. The accumulation of these stocks was mainly driven by subdued export performance in March and April.

Sub-Saharan Africa emerged as the leading destination for Malaysian palm oil exports, with a 24 percent increase during the first four months of 2025. The ASEAN region also recorded an eight percent growth in exports, while exports to other regions experienced a decline.