CPO unlikely to return to 2022 record-high price

Outlook ahead: A man works at a plantation in Banting, Selangor. CPO price is forecast to be lower in 2023 than 2022 due to the anticipated stronger recovery in edible oil production and the build-up in inventory of edible oils.

THE historic spot crude palm oil (CPO) price at RM6,873 per tonne and CPO futures price at RM8,000 per tonne recorded in March 2022 will not likely be repeated this year, say industry experts.

Given the supply availability of other competing vegetable oils including soybean oil (SBO) and the appreciating ringgit, they opine that CPO is expected to post a lower average of around RM3,800 to RM4,000 per tonne in 2023 compared with RM5,100 per tonne in 2022.