The Edge Malaysia (22/07/2026) - KUALA LUMPUR (July 22): Palm oil will likely stay rangebound next month amid firmer energy prices and soft demand from key importers, an industry council said on Wednesday.

Crude palm oil prices per tonne are expected to trade between RM4,400 and RM4,650 in August, the Malaysian Palm Oil Council said in a statement, noting support from biodiesel mandates as well as renewed US-Iran conflict that has lifted gasoil prices above that of palm oil and soybean oil.  

“However, further price gains are likely to be limited by softer demand and elevated vegetable oil stocks in major consuming markets,” the council said.

Prices of the edible oil used in everything from ice cream to soap have risen 14% year to date partly due to concerns over extreme weather conditions that could lower production. However, swelling inventory amid weak demand has helped to keep prices off peak.

Stockpiles in Malaysia have swelled to a four-month high as production rose 8.0% month-on-month to 1.63 million tonnes in June at a time of seasonal upcycle that typically starts in March.

“Near-term vegetable oil demand remains moderate across major importing markets,” the council said. “Vegetable oil stocks in India remained elevated despite the slowdown in imports, pointing to a weaker consumption amid inflationary pressure.”

Nevertheless, the council expects restocking ahead of Diwali to support demand, as India usually imports around 30% of its annual vegetable oil requirements between July and September.

The Malaysian Palm Oil Council comprises representatives from the government as well as millers, refiners, smallholders, manufacturers and other industry associations.

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