Palm oil seen supported by biodiesel demand despite high stocks
CIMB sees crude palm oil at 4,400-4,600 ringgit a ton in the near term as biodiesel demand strengthens, while high inventories temper support.
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what happened
Newsmetry API reports that Ivy Ng Lee Fang, an analyst at CIMB Securities, expects crude palm oil to trade between 4,400 ringgit and 4,600 ringgit a ton in the near term. Firmer biodiesel consumption and the possibility of tighter supplies in 2027 may underpin the market, although inventories remain elevated.
Ng Lee Fang says extended dry conditions associated with El Nino, together with lower fertilizer use, could reduce output from 2027. More expensive energy has made biodiesel production economics more favorable, while Indonesia’s B50 mandate may add to demand. CIMB keeps an overweight view on Malaysia’s plantation sector and lists IOI Corp., Kuala Lumpur Kepong, Genting Plantations and Hap Seng Plantations as its top picks.
why it matters
The outlook combines near-term demand support from biodiesel with a possible supply squeeze from 2027, but large inventories remain a counterweight. Malaysian plantation companies are therefore central to the market focus.
instruments
sources
- Crude Palm Oil Likely Supported by Biodiesel Demand, El Nino Risks — Market Talk — Newsmetry API, 13 October 2026 at 01:10 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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