---
title: "Citigroup expects palm oil prices to weaken"
description: "Citigroup analyst Gan Huan Wen expects that as palm oil production increases during the peak season, palm oil prices may decline by 5%-10% in the coming months. Data from the Malaysian Palm Oil Board "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/256739510.md"
published_at: "2025-09-10T11:57:40.000Z"
---

# Citigroup expects palm oil prices to weaken

> Citigroup analyst Gan Huan Wen expects that as palm oil production increases during the peak season, palm oil prices may decline by 5%-10% in the coming months. Data from the Malaysian Palm Oil Board shows that palm oil inventories have risen to a 20-month high, with production year-to-date reaching 102% of the annual forecast. Despite recent demand from India, China, and Pakistan pushing up spot prices, Malaysia's exports still lag behind Indonesia. Citigroup maintains a bearish outlook on the Malaysian palm oil industry, forecasting CPO prices at MYR 4,200 per ton in 2025 and MYR 4,000 per ton in 2026

Citigroup analyst Gan Huan Wen stated in a report that as palm oil production increases during the peak season, palm oil prices may decline by 5%-10% in the coming months. Data from the Malaysian Palm Oil Board in August showed that palm oil inventories have risen to a 20-month high, with production year-to-date reaching 102% of Citigroup's full-year forecast. He pointed out that although recent demand from India, China, and Pakistan has pushed spot prices up by about 5% over the past month, Malaysia's exports are lagging behind Indonesia. The price discount of crude palm oil relative to soybean oil is narrowing. Citigroup maintains a bearish outlook on the Malaysian palm oil industry and continues to expect CPO prices to be MYR 4,200 per ton in 2025 and MYR 4,000 per ton in 2026

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.