KUALA LUMPUR, April 24 (Xinhua) -- Crude palm oil (CPO) prices are expected to remain supported at 4,500 ringgit (1,133 U.S. dollars) per ton in the near term, driven by expanding biodiesel demand, potential El Nino conditions and ongoing geopolitical risks affecting global energy markets, the Malaysian Palm Oil Council said Friday.
Rising biofuel mandates are expected to tighten supply further, it said in a statement.
Additional domestic consumption across Southeast Asia could absorb up to 1.5 million tons in the second half of 2026, while higher blending requirements in Malaysia, Indonesia and Thailand will increase usage.
Meanwhile, energy market uncertainty linked to Middle East tensions is likely to sustain high crude oil prices, indirectly supporting palm oil. Weather risks are also emerging, as reduced rainfall since March signals a potential El Nino development, it said.
"However, further gains are likely to be capped by softer export demand amid inflation and weaker economic growth in key importing countries, alongside rising stocks as palm oil production gradually enters its seasonal peak," it said.
