Stable Malaysian palm oil prices during the first part of March
1 RM (Malaysian Ringgit) = 0.22 USD*
1 USD = 0.77 GBP
*Note, exchange rates are for March 17, 2025
The Malaysia Crude Palm Oil settlement price traded in a relatively small range of RM4,341/tonne to RM4,623/tonne (US$955-US$1,017) in the first half of March, averaging RM4,495/tonne (US$989). That was down from the average of RM4,531/tonne (US$997) for the whole of February.
The price began the month at RM4,538/tonne (US$998), dropping to RM4,431/tonne (US$975) on the 4th of March. Values then rallied to hit RM4,623/tonne (US$1,017) on the 7th March. They then eased and were at RM4,498/tonne (US$989) by the 17th March. That was 0.7% less than the month before, 6.3% higher than the year before and 36.7% lower than the all-time high set in April 2022.
Malaysia CPO Settlement Price RM
Analysis: Malaysian palm oil increases along with other vegetable oils
Palm oil prices were pushed up a little in the middle of March by higher prices of other vegetable oils including soyoil in Chicago rather than any shortage of the oil in Malaysia itself, demonstrating the interconnection of vegetable oils on global markets.
Malaysian palm oil prices have fallen over the last month. Testing company AmSpec Agri put the decline at 10.1%, with fellow company Intertek Testing Services putting the drop at 7.5%.
Geopolitical tensions have given some support to the crude oil price, which also gives support to palm oil and other vegetable oils that can be used for biodiesel.
Malaysia highlights the health benefits of palm oil to Chinese consumers
Malaysia is targeting China as a market for premium palm oil, according to the South China Morning Post.
China used to be Malaysia’s largest single palm oil export market, but a decline in sales means that India is now the number one customer. Palm oil is key to Malaysia’s economy is it is the country’s largest export commodity, with 2.67 million tonnes shipped to all destination in 2024. China accounted for 1.39 million tonnes of that total in 2024, which was down 8.2% compared to 2023 and 370,000 tonnes or 21.0% lower than in 2023.
A campaign targeting the health attributes of palm oil has been devised by the Malaysian palm oil industry.
“Some people might have that old mindset that palm oil is not healthy so we’re creating awareness of its nutritional benefits,” said Faisal Iqbal, general manager of the marketing and market development office at the Malaysian Palm Oil Council.
“There are actually recommendations that people consume one teaspoon or tablespoon a day, just drink it.”
He said that palm oil contains vitamins, especially vitamin E along with antioxidants and other nutrients. However, there is a perception that other vegetable oils, including rapeseed oil, are healthier.
The health supplements market in China is growing rapidly, consultancy Dezan Shira & Associates predicting 28% growth in the market between 2023 and 2027 to US$58.2 billion. Last year Malaysia secured RM230 million (US$50.6 million) worth of special palm oil trade deals with China.
Disclaimer: The information in this document has been obtained from or based upon sources believed to be reliable and accurate at the time of writing. The document should be for information purposes only and is not guaranteed to be accurate or complete.