Palm oil prices dropped on trade fears and rising stocks, but analysts stay optimistic on long-term demand.

Crude palm oil futures on Bursa Malaysia declined on Monday amid concerns over U.S.-China trade tensions, rising inventories, and increased production. The October 2025 contract fell to RM4,420 per tonne, with broader market sentiment influenced by potential tariffs and higher stocks. Despite this, analysts remain optimistic, citing strong exports, inventory peaks in September, and upcoming demand from Indonesia’s B50 biodiesel mandate. Forecasts project CPO prices to average RM4,200–4,300 per tonne in 2025 and RM4,000–4,200 in 2026, with top picks including SD Guthrie, IOI Corp, and Hap Seng Plantations.