Lower CPO output in 2024 likely to lift price sentiment

HLIB Research changed its 2023 CPO price assumptions to RM3,850 per tonne due to weak CPO price sentiment recently.

PETALING JAYA: The high palm oil stockpile in major palm producing countries that will likely peak soon, favourable palm oil–gas oil (Pogo) spread and lagged impact of El Nino on palm production, are expected to support crude palm oil (CPO) price from 2024 onwards.

Hong Leong Investment Bank (HLIB) Research said CPO price has been trending down recently, bringing year-to-date average to RM3,866 per tonne.