Lower crude palm oil prices on the horizon

Crude palm oil (CPO) prices are projected to soften in the second quarter of this year, weighed down by increasing supply and declining prices, says CGS International Research (CGSI Research) . Palm oil production for March showed that Malaysia’s palm oil inventory rose 4% month-on-month (m-o-m), according to the Malaysia Palm Oil Board (MPOB). CGSI Research said the increase came even as stronger-than-anticipated domestic consumption helped offset the higher- than-expected output. Palm oil production also came in higher than expected at 1.39 million tonnes for the month in review, reflecting a 16.8% m-o-m increase. “We reckon the variance was due to a rush to harvest crops ahead of the Hari Raya holidays at the end of March,” the research house said. Looking ahead, CGSI Research said the expected dip in CPO prices will be largely driven by improving production conditions and geopolitical pressure. It said the ongoing worldwide trade volatility is creating uncertainty in the ...