Palm oil prices fell to a year and a half low: analysts predict further decline

Palm oil prices on the stock exchange on May 8 reached their lowest level since September 2023 due to a decrease in the cost of soybean oil and an expected increase in stocks in producing countries. Experts warn of a further decline in quotes in the coming months.At the trading on May 8, 2025, Malaysian palm oil futures continued their downward trend. The cost of a ton of the product fell by 16 ringgit (0.43%) to 3,712 ringgit or 870.3 US dollars. This is the lowest figure in the last year and a half, starting from September 2023. This is reported by the analytical agency APK-Inform.

One of the key reasons for this decline was soybean oil prices on the Dalian Stock Exchange in China, which also showed a decline. The decline in demand for vegetable oils in general is putting pressure on market prices, and the expected increase in production volumes and the accumulation of significant stocks of palm oil in major producing countries, in particular Indonesia and Malaysia, only reinforces the trend.According to analysts' forecasts, in the coming months, from June to November, the cost of palm oil may fall even lower - to 3,500 ringgit per ton, which is equivalent to approximately 826.5 US dollars. They emphasize that the expected increase in production during a period of favorable climatic conditions will further stimulate the accumulation of excess production volumes.Recall that earlier price declines were also observed for other types of oilseeds - in particular, the cost of feed barley and soybean oil is also under pressure against the background of low purchasing activity. This, in turn, affects the overall price chain of the agricultural market.

 

Source: https://landlord.ua/news/roslinnitstvo/cziny-na-palmovu-oliyu-vpaly-do-minimumu-za-pivtora-roku-analityky-prognozuyut-podalshe-zdeshevlennya