In the second quarter of this year, crude palm oil (CPO) prices are expected to decline after a positive increase in the previous quarter.
This was confirmed by CGS International itself, which concluded that the decline was triggered by a series of supply surges and price declines.
According to the Malaysian Palm Oil Board (MPOB), palm oil production has shown an increase of 4% in March 2025.
Meanwhile, total palm oil production was reported to have expanded to 1.39 million tonnes, showing an increase of 16.8%.
The positive development was supported by harvesting activities carried out before the Hari Raya Aidilfitri holiday last March.
However, the rate of palm oil exports is predicted to slow following gas supply disruptions due to a major explosion involving a pipeline in Selangor.
This situation is expected to slow down between 10% and 15% of Malaysia's total palm oil exports.
In general, palm oil production is expected to strengthen due to the recovery process of agricultural yields affected by changes in weather.
