KUALA LUMPUR, Nov 12 (NNN-BERNAMA) – Analysts yesterday forecast, crude palm oil (CPO) prices to remain firm, despite Malaysia’s palm oil stockpile hitting a six-month high in October.
Maybank Investment Bank said in a note that, compared to a year ago, Malaysia’s October stockpile of 2.46 million tonnes, up 31 percent year-on-year, is ample for output recovery.
However, given the year-to-date strength of CPO prices of 4,346 ringgit per tonne, Maybank has raised its 2025 and 2026 CPO average selling price forecasts to 4,330 ringgit per tonne, up 8.3 percent, and 4,100 ringgit per tonne, up 2.5 percent, respectively.
Meanwhile, Kenanga Research noted that, coupled with expanding Latin American soybean area, and slow palm oil supply growth, 2026 edible oil output should improve by five million to seven million tonnes, or two percent to three percent year-on-year, or just enough to match a slow demand growth scenario.
“If demand were to grow stronger, it may still outstrip supply. As such, edible oil prices, including palm oil prices, should still stay firm moving into 2026, despite an improving supply outlook,” said Kenanga.
With palm oil inventories likely to ease in November to December, on the back of seasonally lower production, Apex Securities also expects CPO prices to remain firm.
“The strength in prices will be underpinned by sustained demand from both food and biofuel segments, alongside softer production growth in Indonesia and Malaysia,” said the research house.– NNN-BERNAMA