Malaysian palm oil export prices have continued to climb during September 2025, underpinned by supply deficits, firm international demand, and a favorable exchange rate. Standstill of harvesting activities in Malaysia and Indonesia due to unfavorable weather has reduced inventories. Rising purchases from China, India, and the EU, and geopolitical tensions constricting alternatives, have given support. Weakening of the Malaysian ringgit has also helped make it competitive on the international scene. Industry observers project further price increases on the strength of sustained supply disruption, festive season demand spikes, and increasing use of palm oil-derived biodiesel as part of worldwide green energy efforts. Inflationary force and increasing crude oil prices also should help the market position of palm oil. Environmental issues involving deforestation and other vegetable oils may, however, affect price stability. In spite of the aforementioned risks, Malaysia is a leader in global palm oil markets through continued demand and favorable trends.
