iGrain India - The price of Crude Palm Oil (CPO) is projected to remain between 4000 and 5000 ringgit per tonne in 2025, according to estimates from the Council of Palm Oil Producing Countries (CPOPC).
This forecast comes amid expectations of stable production in major palm oil-producing nations like Indonesia and Malaysia, though several factors are likely to keep the market conditions complex.
Currently, CPO prices are around 5000 ringgit per tonne, but this is viewed as a temporary spike, primarily driven by severe flooding in Malaysia, which has created an opportunity for price increases.
Additionally, the aging oil palm trees in plantations in Indonesia and Malaysia are expected to reduce yields.
With limited expansion of new plantations and unfavorable weather conditions, production is unlikely to increase significantly, leading to a supply-demand imbalance that may sustain high prices.
The global demand for palm oil continues to rise, which, coupled with stable production, suggests that prices may remain strong.
However, the complex supply situation, including limited availability and the challenges posed by aging plantations and unpredictable weather, could maintain upward pressure on prices.
The CPOPC, an inter-governmental organization aimed at fostering cooperation among palm oil-producing countries, continues to work towards addressing these challenges.
The group has members such as Indonesia, Malaysia, and several other countries, with efforts to include Thailand as a member, given its growing role as the third-largest producer of palm oil globally.