Palm oil futures ended the week with losses erasing earlier gains.
This decline was prompted by weak performance from Dalian palm olein and Chicago soyoil, along with lower crude oil prices and an improved outlook for Malaysian palm oil exports.
The price of palm oil for October delivery fell to $1,011 per ton, reflecting a downward trend in palm oil prices due to a less favorable outlook.
Malaysia is projected to produce 19.5 million metric tons of crude palm oil in 2025, up from 19.3 million tons in 2024. The director-general of the Malaysian Palm Oil Board (MPOB), Ahmad Parveez Ghulam Kadir, credited improvements in labor supply as a factor in the expected increase in production.
Speaking to reporters on Thursday, he mentioned these factors. It is also expected that exports from the world’ s second-largest palm oil producer will slightly rise in 2025.
Malaysia’s palm oil production and exports are projected to rise in 2025/26 due to favorable regional conditions. Kadir also noted that India remains a major importer of palm oil. With the increase in serviced oil palm seed in India, there will be a reliable pathway for Malaysia to export palm oil.
The USDA also believes that the projections in Kadir’s analysis will come true. The increase in cultivated area will be reflected in the 5.15 million hectares planned for 2024 to 2025. Favorable weather patterns are expected to lead to significant palm oil seedling production in the regions being cultivated. As stated in the report, production will experience considerable growth.
India’s palm oil imports are also expected to remain strong following the USDA’s 2024 forecasts. India has been one of the largest importers of palm oil from Malaysia. The Statistics Malaysia data were promising, with the 2024 figure of 2, 2015 being noteworthy alongside the high export percentages. The projected 17. 9 percent growth is also expected to accelerate further soon.
The Federal Government has launched the National Palm Oil Traceability System (NaPOTS) Framework and formed an Inter-Agency Committee of 16 members to oversee its implementation.
NaPOTS aims to improve quality management, strengthen sustainability, support climate-smart initiatives, and position Nigeria’s palm oil industry competitively both domestically and internationally. During the inauguration, Sen Abubakar Kyari, Minister of Agriculture and Food Security, stated that this event marks a significant milestone in Nigeria’s agricultural transformation.
Dr. Marcus Ogunbiyi, the ministry’s Permanent Secretary, said that Kyari would oversee the design and implementation of the Traceability Roadmap for Palm Oil, which will involve multi-stakeholder collaboration.
He emphasized that this initiative aligns with the ministry’s National Agricultural Technology and Innovation Policy (NATIP), which promotes innovation, sustainability, and value-driven market chains.
“This framework for traceability addresses commitments to food safety, market transparency, and a resilient economy under President Bola Tinubu’s government.”
“It streamlines value chains, boosts global competitiveness, and encourages responsible production across the oil palm sector,” he added.
Kyari also said that adhering to national and international quality standards would enhance Nigeria’s reputation in the food processing, pharmaceuticals, and cosmetics industries, while also boosting consumer trust by eliminating product adulteration and ensuring compliance with quality benchmarks.
He highlighted the importance of smallholder farmers, noting that over 80% of Nigeria’s palm oil is produced by them, and added, “A traceability framework is a critical bridge to formal markets.” The Plantation Owners Forum of Nigeria (POFON) has developed a plan to stabilize palm oil prices in the country, reducing the effects of inflation.
He highlighted the importance of smallholder farmers, noting that over 80% of Nigeria’s palm oil is produced by them, and added, “A traceability framework is a critical bridge to formal markets.” The Plantation Owners Forum of Nigeria (POFON) has developed a plan to stabilize palm oil prices in the country, reducing the effects of inflation.
The forum explained that it aimed to meet the economic needs of both the wealthy and the less privileged groups. POFON’s Chairman, Emmanuel Ibru, stated this.
The association is working to support Nigeria’s economic goals, like the government’s efforts to stabilize palm oil prices. “As it is in Nigeria, we have two seasons for palm oil. In peak season, the prices will be lower, and in the lean season, the prices will rise. Our members are attempting to find something out this time around to stabilize the prices so that the difference between lean and peak seasons is minimized, “He said.
Members are also investing to expand their plantations and increase capacity to meet the domestic market demand in Nigeria.“There is no doubting the fact that POFON and its members, over the last fifteen years, have consistently succeeded in efforts to increase oil palm production in the country, despite the ongoing imbalance between palm oil supply and demand in Nigeria.”