Palm Oil Price Outlook For First Week Of August 2025

Palm oil trader David Ng expects Bursa Malaysia Derivatives crude palm oil (CPO) futures to trend lower next week on expectations of weaker demand.

He said market sentiment would be weighed down by anticipated higher seasonal output ahead of the release of the key crop report.

In remarks to Bernama, Ng said:
"We expect the commodity to trade between 4,150 and 4,320 ringgit per tonne."

Meanwhile, Jim Teh, senior palm oil trader at Interband Group of Companies, expects the commodity to trade between 3,900 and 4,000 ringgit per tonne next week.

He noted that this price range represents a good buying opportunity for physical purchases by importers from China, India, Pakistan, the Middle East and European Union countries.

He pointed out that palm oil futures continued to outperform crude oil prices, which fell to around US$66 to US$67 a barrel.

He added:
"Since 2007, palm oil has consistently shown strong performance in the commodities market."

Separately, the Malaysian government is seeking to abolish tariffs on exports of commodities such as cocoa, rubber and palm oil to the United States, following Washington's recent announcement of new tariff rates, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The minister said:
"If the United States finds that it is unable to produce these commodities domestically, there is a good chance they could be exempted from the 19% tariff."

Weekly Contract Performance:

• The August contract fell by 28 ringgit to 4,193 ringgit a tonne.
• The September 2025 contract dropped by 32 ringgit to 4,226 ringgit a tonne.
• The October 2025 contract fell by 28 ringgit to 4,245 ringgit a tonne.
• The November 2025 contract declined by 20 ringgit to 4,263 ringgit a tonne.
• The December 2025 contract lost 11 ringgit to reach 4,279 ringgit a tonne.
• The January 2026 contract, however, rose by 1 ringgit to 4,291 ringgit a tonne.

Weekly Trading Activity:

• Weekly trading volume fell to 293,302 lots, compared with 385,858 lots the previous week.
• Open interest also declined to 224,913 contracts, compared with 229,303 contracts the previous week.

The spot price for August-delivery crude palm oil (South Malaysia) remained unchanged at 4,230 ringgit a tonne.

Source: Bernama