Emerging Markets Offset Decline in Malaysian Key Palm Oil Buyer: MPOC

The Malaysian Palm Oil Council (MPOC), in a statement on Monday this week, said that despite weaker demand from traditional markets, palm oil has remained the price leader in the first quarter of 2025, with exports shifting towards Sub-Sahara Africa, with its annual population growth of 30 million, reported in The Edge Malaysia.  “This trend is expected to continue throughout 2025, keeping Malaysia palm oil exports strong,” it said.
For the first time in years, India’s palm oil imports dropped to 648,000 MT from January to February 2025, at a time when crude palm oil prices averaged RM4,700/MT (USD1,064/MT).  Soybean oil imports at 727,000 MT surpassed palm oil.  On the other hand, China has been importing only its core palm oil demand which averaged 300,000 MT per month in 2024.
MPOC expects crude palm oil prices to fluctuate between RM4,400 and RM4,600/MT in March influenced by increased competition from abundant and competitively price soybean on in the global market. That said, India’s shift toward soybean oil, however, has only partially replaced its palm oil demand, leading to optimism that palm oil imports will rise in the coming weeks as India replenishes its stocks, potentially stabilizing prices, the report said.