Palm Oil Dips on Weak Rival Oils, but Analysts Remain Bullish on 2025 Outlook

Malaysian palm oil futures retreated to MYR 4,502 per tonne on February 18, 2025, down 1.19% from the previous session, following weakness in rival vegetable oils. Despite the short-term dip, analysts maintain a positive outlook for 2025. The Malaysian Palm Oil Council projects tight inventories and expects prices to climb to MYR 4,850 in the coming weeks. Supporting factors include potential demand recovery from India and strengthening prices of soybean and sunflower oils. MARC Ratings forecasts palm oil prices to average RM4,600/MT in 2025, up from RM4,200/MT in 2024. Traders are closely watching global economic factors and biodiesel mandates that could further boost demand.

 

Sources: Trading Economics, MARC Ratings, Malaysian Palm Oil Council