MPOB Expects CPO Prices To Remain Strong At RM4,000-RM4,300 A Tonne This Year
BANGI, June 30 (Bernama) -- The Malaysian Palm Oil Board (MPOB) expects the average price of crude palm oil (CPO) to remain strong at between RM4,000 and RM4,300 per tonne this year, supported by current global petroleum prices.
MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir said CPO prices are expected to continue receiving support from global oil prices following tensions in the Strait of Hormuz.
"If we look at the current situation, our palm oil prices have remained strong, and for this year, we are targeting an average price of between RM4,000 and RM4,300 per tonne," he said at a press conference after the MPOB 2026 Palm Oil Technology Transfer (TOT) Programme held here, today.
He said the tensions in the Strait of Hormuz have had a direct impact on global petroleum supplies, which in turn has driven up the prices of palm oil and other vegetable oils due to the close relationship between these commodities.
Ahmad Parveez said the palm oil industry is also facing a key challenge that is expected to limit production, namely, the lingering effects of the El Niño phenomenon on oil palm pollination.
"We are monitoring the potential post-El Niño effects, which bring hotter weather and reduced rainfall.
"The impact is not immediate. Instead, it has long-term effects on pollination activities carried out by oil palm weevils. Excessively hot weather reduces the activity of these pollinating insects, resulting in lower pollination rates and reduced oil extraction yields," he said.
On the European Union Deforestation Regulation (EUDR), Ahmad Parveez said that more than 80 per cent of smallholders in Peninsular Malaysia are already prepared to meet the regulation's requirements.
He said MPOB is targeting 90-95 per cent of smallholders with valid licences and clear land ownership status to be incorporated into the compliance system before the EUDR implementation for smallholders begins in the middle of next year.
"At least 90-95 per cent of eligible smallholders will be incorporated into our compliance system before the implementation period begins, hence enabling their palm oil to be exported to the European Union market without any obstacles," he said.
-- BERNAMA