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M.P. Evans CEO: Palm oil price floor holds as biodiesel demand lifts CPO
M.P. Evans CEO says CPO has a floor from Indonesian biodiesel mandates and aging plantations, even as edible-oil demand softens. The producer's certified estates also position it for EUDR compliance.
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M.P. Evans Group CEO Matthew Coulson told investors Monday that crude palm oil prices are finding support near current levels, with Indonesian biodiesel mandates and tighter supply from aging plantations offsetting softer edible-oil demand.
Speaking on a webcast focused on the producer's pricing and sustainability strategy, Coulson said the company sees CPO holding in a range that still allows profitable operations across its Indonesian estates. The comments come as palm oil trades near 4,200 ringgit a tonne on Bursa Malaysia, down from 2025 highs but above the level where most producers break even.
Coulson framed the pricing outlook around two forces. On the supply side, replanting delays and maturing trees are limiting output growth across Indonesia and Malaysia, the two biggest producers. On the demand side, Indonesia's B40 biodiesel mandate – requiring 40% palm-oil blending in diesel – is absorbing a growing share of domestic output, leaving less for export. That structural bid, he said, is the main reason CPO has not fallen further despite weak demand from price-sensitive buyers in India and Pakistan.