Global Palm Oil Prices
Global Palm Oil Price
Global Palm Oil Price Overview
As of mid-February 2025, global palm oil prices hover around USD 1.07 per kilogram (approximately USD 1,070 per metric ton), reflecting about a 3% increase over the past month. Heightened demand ahead of major consumption periods and lower-than-expected stock levels in key producing regions (notably Malaysia and Indonesia) have supported these price gains. Current reports show that Malaysian palm oil inventories have tightened slightly, while strong import demand from India and China continues to drive global market momentum.
Global Palm Oil Price Drivers and Regional Market Analysis
- Supply Constraints: Seasonal production slowdowns and weather-related disruptions have limited fresh fruit bunch yields, contributing to upward price pressure.
- Robust Demand: Growing consumption in Asia for food and biofuel, combined with resumed economic activities post-pandemic, has bolstered market sentiment.
- Regional Variations: Southeast Asia, the largest producer of palm oil, has seen relatively stronger price gains due to local stock drawdowns. Meanwhile, importing regions such as the Middle East and North Africa face additional shipping and logistics costs, pushing regional prices slightly higher.
Global Palm Oil Price Forecast
- Short-Term (1–3 Months): Prices are likely to remain firm, with potential minor fluctuations tied to weather changes and fluctuating import policies.
- Medium-Term (3–12 Months): A moderate production rebound is expected, but sustained biodiesel mandates and recovering global demand could keep prices above USD 1.00 per kilogram.
- Long-Term (1+ Years): Efforts to diversify supply sources and advances in sustainable farming may gradually moderate price volatility, though demand growth in emerging markets is expected to remain a supportive factor.
Palm Oil Prices FAQs
It has risen by around 3%, driven by tighter Malaysian supply and robust global demand.
Key drivers include seasonal production slowdowns, strong import demand from major buyers (India and China), and ongoing biodiesel mandates.
Higher palm oil costs may squeeze profit margins for producers of food products and biodiesel, potentially leading to slightly increased costs for end consumers as well.