AKP Phnom Penh, 20 August, 2026--
Malaysia's crude palm oil (CPO) prices are expected to remain elevated through the rest of 2026 and into early 2027, as stronger biodiesel demand and the risk of an El Niño-driven supply disruption tighten the global vegetable oils market, research houses said.
BMI Country Risk and Industry Research has raised its 2026 average price forecast for front-month Bursa Malaysia-listed CPO futures to 4,453 ringgit (1,103 U.S. dollars) per ton, from 4,300 ringgit previously, citing a narrowing global production surplus as consumption growth outpaces supply.
"We expect global palm oil production to reach 81.4 million tons in the 2026/27 season, a marginal decline of just 20,000 tons from 2025/26," BMI said in a note on Wednesday.
Global consumption is forecast to rise 2.7 percent year on year to 79.9 million tons, reducing the production surplus from 3.6 million tons in 2025/26.

AKP-Xinhua