Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) are expected to trade between RM3,800 and RM4,000 per tonne during January-July 2026, said an industry expert.

According to BERNAMA News Agency, Godrej International Ltd director Dorab Mistry mentioned that this forecast should be assessed after July, considering potential weather-related factors such as drought and Indonesia's move for the biodiesel B50 mandate. Mistry highlighted that CPO futures below RM4,000 are not appealing to listed palm oil companies and shareholders, predicting that the recovery of palm futures might not sustain into April.

Mistry further explained that should futures dip below RM4,000, significant efforts would emerge to support and elevate palm oil prices. Indonesian industry leaders and officials might reiterate the B50 mandate to bolster prices. His remarks came during the 37th Palm and Lauric Oils Price Outlook Conference and Exhibition (POC) 2026, in a session titled 'Global Palm and Vegoils Price Outlook 2026 in The Reign of President Trump and Prabowo.'

He also noted that Malaysia's palm oil production improved in 2025 due to adequate manpower and favorable weather, hitting over 20 million tonnes compared to an expected 19.3 million tonnes. Malaysian palm oil production from October 2025 performed effectively, and with increased labor, production cycles normalized. Furthermore, Malaysian palm stocks surpassed three million tonnes, exceeding the anticipated two million tonnes, while palm olein regained its price competitiveness.