Palm oil prices may rise above RM4,300 in 2024 on supply, output woes -MPOC


KUALA LUMPUR: Malaysia's crude palm oil prices will trade at RM3,700-RM4,200 a metric ton in the second half of 2023, and will remain supported in the long term, state agency Malaysian Palm Oil Council (MPOC) said on Tuesday.

Heading into 2024, there is a strong possibility that prices may rise above RM4,300 a metric ton, MPOC deputy director Mohd Izham Hassan said in a webinar.

This is due to market uncertainties including those surrounding Black Sea sunflower oil supply and Malaysia's palm oil production that has remained below expectations, Mohd Izham said.

Production in the world's second-largest producer during the first half of 2023 was nearly 3% lower than in the same period last year, Mohd Izham added.

Malaysia's benchmark crude palm oil futures have declined 7% so far this year. They traded around RM3,882 on Tuesday, as traders weighed a decline in rival soft oil prices and supply concerns.

On demand, Mohd Izham forecast largest buyers India and China to import a combined total of 16.5 million tonnes of palm oil by December 2023, up from 15 million tonnes in 2022.

"ASEAN and MENA regions will also see higher demand for palm oil due to insufficient domestic production and competitive price of palm oil," he added. - Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

CPO , crude palm oil , MPOC

   

Next In Business News

Success Transformer declares special dividend of 1.5 sen/share
Carsome secures RM100mil financing facility from AmBank
FBM KLCI slips from three-year high on profit-taking
Asian currencies, stocks subdued as dollar steadies
Maybank and FRIM sign 5-year MoU to reforest ex-mining plot in Perak
RON95 rationalisation expected to have bigger impact on SMEs - SAMENTA
Thailand approves US$2.8bil soft loan scheme for commercial banks
Oil falls on lingering demand concerns in China
MAA revises up 2024 vehicle sales forecast to 765,000 units
IRB collects RM512.6mil through SVDP 2.0

Others Also Read