Crude Palm Oil prices hit highest levels since December 2024

Crude Palm Oil (CPO) prices have reached their highest levels since December 2024, following a weekly surge of nearly 6.54 percent on the Bursa Malaysia Derivatives. CPO futures closed the week at 5,018 Malaysian ringgit per ton.

Several factors are driving this price rally. The upcoming full implementation of the B50 biodiesel program in Indonesia, scheduled for October 2026, is expected to increase domestic demand. Additionally, concerns regarding the El Nino phenomenon have raised fears that dry weather could reduce palm oil production in Indonesia and Malaysia.

Despite the upward trend, market growth faces headwinds. Malaysian palm oil supplies reached a five-month high in July 2026, and global demand may shift as Indian refineries potentially pivot toward cheaper soybean oil. Recent data also indicates a decline in Malaysian palm oil exports, with Intertek Testing Services reporting a 13.2 percent drop in shipments between August 1 and August 20 compared to the previous month.