Malaysia: Palm oil prices have peaked, says Fitch Solutions

KUALA LUMPUR (May 20): Fitch Solutions Country Risk and Industry Research said palm oil prices have now peaked, as Indonesia announces the lifting of its export ban and Malaysia moves to increase exports. In its weekly commodities strategy report on Thursday (May 19), the firm said it now expects prices to remain on a steady downtrend, as greater seaborne supply eases the pressure on the market that originated even prior to the Russian invasion of Ukraine. “In the longer term, we highlight Malaysia as a benefactor should Indonesia decided to reimpose a ban on palm oil exports, with exports from the country rising significantly during Indonesia's short-lived ban,” it said. Fitch Solutions said the short-lived Indonesian palm oil export ban enacted in April 2022 has served to exacerbate severe supply-side pressures in the global edible oils market, caused by the Russia-Ukraine conflict and adverse weather conditions in key producer markets. “Indeed, palm oil prices had already risen ...