Lang
Malaysian palm oil prices are expected to range between 4,400 and 4,600 ringgit ($994-$1,039) per tonne in March, as emerging markets such as sub-Saharan Africa help offset weaker demand from major buyers like India and China, according to the Malaysian Palm Oil Council (MPOC).
Despite subdued demand from traditional markets, palm oil remained the price leader during the first quarter of 2025, with exports shifting towards emerging markets in sub-Saharan Africa, driven by annual population growth of 30 million people, according to a statement issued by the council on 17 March 2025.
The council added: "We expect this trend to continue throughout 2025, which will keep Malaysian palm oil exports strong."
With crude palm oil (CPO) averaging 4,700 ringgit ($1,061) per tonne, India's palm oil imports fell to 648,000 tonnes between January and February 2025. This volume was lower than soybean oil imports, which reached 727,000 tonnes over the same period.
China, meanwhile, maintained imports at essential-needs levels only, averaging 300,000 tonnes per month in 2024, according to the council.
The MPOC forecast that crude palm oil (CPO) prices would range between 4,400 and 4,600 ringgit ($994-$1,039) per tonne during March, citing growing competition from soybean oil, which is available in abundant supply and at competitive prices on the global market.
However, the council noted that India's shift towards soybean oil has not been a complete substitute for its palm oil needs, reinforcing expectations of higher palm oil imports in the coming weeks as India rebuilds its stocks, which could help stabilise prices.