Azerbaijan’s palm oil imports show mixed trends as experts predict future decline

Published 2024년 9월 12일

Tridge summary

Azerbaijan's palm oil imports from Southeast Asia remained steady in 2024, importing 23,818 tons in the first half of the year, a slight increase from the previous year. However, the cost of crude palm oil has decreased by 3.2% due to lower prices. The source of these imports has shifted from Indonesia, which provided 75% of imports last year, to Malaysia, which has surged by 86% to 11,054 tons. Experts predict that demand for palm oil may weaken due to the appreciating Malaysian ringgit and growing inventories. The cost per ton of crude palm oil in Azerbaijan has decreased from $1,231 to $1,184, providing financial relief.

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Original content

Azerbaijan has maintained its palm oil imports from Southeast Asia in 2024, purchasing 23,818 tons in the first half of the year—a slight increase of 0.6% compared to last year. However, the cost of crude palm oil has decreased by 3.2% due to lower prices, Azernews reports. Indonesia, once the dominant supplier, saw its share of Azerbaijan’s imports fall from 75% last year to 54% this year. This shift is attributed to a significant rise in imports from Malaysia, which surged by 86% to 11,054 tons. Conversely, imports from Indonesia dropped by 28% to 12,912 tons. Experts suggest that demand for palm oil may weaken in the near future due to the appreciating Malaysian ringgit and growing inventories. Steven Chong of Apex Securities points out that the stronger ringgit and shifting price dynamics between palm oil and soybean oil could impact demand. Chong forecasts average crude palm oil prices of 4,000 ringgit/tonne for 2024 and 3,800 ringgit/tonne for 2025. The current futures ...

Source: UkrAgroConsult