Malaysia: Asian crude palm oil watch in the first quarter of 2023

RBD Palm Oil

Malaysia

Published Mar 24, 2023

Tridge summary

Malaysian benchmark crude palm oil (CPO) spot prices have averaged around USD915 per tonne (t) so far in 1Q23, sharply lower than the average of around USD1,175/t in 2022, but a marked improvement from the end-September 2022 level of around USD700/t and the last 10-year average of USD730/t. Prices have been supported by market expectations of significantly higher biodiesel consumption in and lower exports from Indonesia, and the impact of heavy rainfall at the start of 2023 on output.

Original content

We expect CPO prices to weaken later in the year, driven by higher supply of palm and other vegetable oils due to favourable weather conditions. Our assumption of USD850/t for 2023 implies that prices will decline to below USD700/t by year-end, and we expect further weakness in 2024. A hit to sunflower seed oil supply due to the Russia-Ukraine war is a key upside risk to our expectations. Yields Improving, Labour Crunch Easing Latest production data from Malaysia and Indonesia indicate that yields are on an uptrend, helped by plentiful rainfall in the last few years and ...

Source: Hellenic Shipping News

What to read next

The price of wheat in Chicago continued to increase due to the weather

AgroForum · Apr 25, 2024

Purchase prices for grain in Ukraine on April 24, 2024

Graintrade · Apr 24, 2024

The first Ukrainian greenhouse tomatoes are much more expensive than Turkish ones

Agravery · Apr 24, 2024

Prices for a popular vegetable in Ukraine have fallen unusually

Unian · Apr 24, 2024

Apricot production in Europe will not present changes

MXfruit · Apr 25, 2024

Read more relevant content

Forecasting Supply Chain Impact after EUDR Implementation: Lessons learned from EUTR

Hyunwoo Lee · Apr 25, 2024

Implications of the EUDR for the Malaysian and Indonesian Palm Oil Industries upon Implementation

Benjamin Lategan · Apr 25, 2024

Export Performance of Chile’s Processed Fruits During Jan-24 and Feb-24

Xchel Perez · Apr 24, 2024

Ensuring Compliance and Sustainability in the Cocoa Industry: Collaboration with the Rainforest Alliance

Mzingaye Ndubiwa · Apr 24, 2024

The Bittersweet Story of Traceability and Ethical Sourcing Practices of Confectionery Industry Leaders

Sun Jae Lee · Apr 24, 2024

On-the-Ground Updates

Egypt's Fresh Garlic Prices Soared by 40% MoM in Apr-24 Amid Inflation and Currency Changes

Emad Kader · Apr 24, 2024

On-the-Ground Updates

Stable Bread Prices in Egypt Despite 10% MoM Drop in White Wheat Prices

Emad Kader · Apr 24, 2024

Impact of Weather Events on Ecuador's Agricultural, Productive, and Energy Sectors

Gabriela Cabezas · Apr 23, 2024

By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.