The Malaysian government estimates the average price of crude palm oil to range between 3,900 ringgit ($925.05) and 4,100 ringgit per metric ton next year, due to higher global production and increased output of rival oils.
The benchmark crude palm oil contract was trading at 4,589 ringgit at Thursday’s close, with a year-to-date average price of 4,252 ringgit.
The oil palm subsector is expected to see higher crude palm oil output in 2026, due to increased fresh fruit bunch yields and improved oil extraction rates (OER), the government said in its economic outlook report released alongside its 2026 budget on Friday.
Favourable weather conditions are expected, and output is also likely to be boosted by the expansion of matured plantation areas, further improvements in harvesting practices as well as the continuing switch to mechanisation.
The government added that the improved OER, resulting from more frequent harvesting activities and better field management, will likely enhance fruit quality and reduce losses.
“These developments will provide a lift to the overall expansion of the oil palm subsector during the year,” it said.
Exports of agricultural goods are also projected to grow by 3.3% next year, supported by competitive prices and sustained global demand for palm oil and palm oil-based agricultural products, the report said.
Source: Reuters
