CPO price to average at RM5,100 a tonne this year in Malaysia

Published 2023년 1월 2일

Tridge summary

The Malaysian oil palm industry outlook is positive for 2023, driven by increased demand for palm oil due to disruptions in the sunflower oil supply chain from the Russia-Ukraine conflict. Other factors contributing to the rise in palm oil include high prices of soybean oil and Brent crude oil. The Malaysian Palm Oil Board (MPOB) predicts the average price of crude palm oil (CPO) to be RM5,100 a tonne in 2023, a 15.7% increase from 2021. The ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to boost demand for palm oil products, with tariffs reduced for these products in member countries like Canada, Mexico, and Peru. Palm oil production is projected to increase slightly in 2023 due to increased productive areas, despite a slow recovery from labour shortages. Closing stocks of palm oil are anticipated to rise to two million tonnes in 2023 due to higher supplies of other vegetable oils.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Malaysian oil palm industry sees a brighter performance this year, which may continue into 2023, supported by stronger demand for the commodity, the Malaysian Palm Oil Board (MPOB) said. Director-general Datuk Ahmad Parveez Ghulam Kadir said the ongoing Russia-Ukraine conflict has disrupted the sunflower oil supply chain globally, causing a surge in the demand for palm oil as a replacement for sunflower oil. The rising prices of soybean oil and Brent crude oil in the world market are also contributing factors that may impact the performance of palm oil, he said. “As such, we expect the price of crude palm oil (CPO) to average at RM5,100 a tonne for this year, 15.7 per cent higher compared to RM4,407.00 a tonne in 2021,” he said in a statement Friday. The average CPO price for January-November 2022 was RM5,167 a tonne, an increase of 18.4 per cent from RM4,363 a tonne in the same period in 2021. CPO prices saw a decline at the beginning of the third quarter of this year due to ...

Source: UkrAgroConsult