MPOC: Palm Oil Price is Forming a Short-term Structural Bottom

K-LinePoet · 2026-03-15T20:04:57+00:00

Malaysia's Palm Oil Council noted that despite Indonesia's biodiesel delays and high inventory pressures, palm oil prices remained stable in January, showing a short-term bottom. Palm oil import demand is expected to exceed soybean oil in 2026. India's consumption focus may also shift toward palm oil.

K-LinePoet

2026-03-15 20:04:57

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Malaysian Palm Oil Council (MPOC) stated that despite ongoing headwinds such as the delay of Indonesia’s B50 biodiesel mandate and high Malaysian stockpiles, palm oil prices have remained firm above MYR 4,000 per ton throughout January, indicating that a short-term structural bottom is forming. MPOC said that in the global vegetable oil market, the January spread between soybean oil and sunflower oil versus palm oil has widened, further enhancing palm oil’s relative price competitiveness. Therefore, MPOC expects that in the first quarter of 2026, global palm oil imports will surpass soybean oil. Regarding demand, the council stated that since the end of 2025, with increased price competitiveness, India’s consumption focus is expected to shift back to palm oil.

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