MPOC: Palm Oil Prices May Trade in a Range in March

The Malaysian Palm Oil Council (MPOC) stated that palm oil prices are expected to consolidate within the range of 4,000 to 4,300 Malaysian ringgit per metric ton in March.

MPOC noted that tightening supply, improving demand from India, and firm U.S. soybean oil prices are likely to provide support to palm oil prices. Meanwhile, stronger Malaysian exports and Indonesia’s front-loaded shipments ahead of an export tax increase are expected to reduce inventories in both countries, further improving the supply-demand balance.

On the demand side, MPOC believes that as price competitiveness improves, Indian import demand is likely to rebound. Palm oil consumption in 2026 is projected to increase by approximately 800,000 tons.

However, the council cautioned that ample global soybean supplies and rising Chinese soybean oil exports could cap gains in crude palm oil (CPO) prices, potentially limiting further upside. As palm oil and soybean oil are often used in similar end products, their price movements tend to be closely correlated.