Malaysia: Fitch Ratings expects crude palm oil to average US$850 a tonne in 2023

Published 2022년 12월 28일

Tridge summary

Fitch Ratings predicts that the average price of crude palm oil (CPO) spot in Malaysia will drop significantly from $1,175 per tonne in 2022 to $850 per tonne in 2023. The prices are expected to strengthen to more than $900 per tonne in the first half of 2023, driven by Indonesia's decision to increase the share of palm-oil based fuel in diesel. However, prices are expected to fall in the second half of 2023 due to an anticipated increase in supply. The rating agency also expects a gradual improvement in the availability of foreign workers in Malaysia and expects healthy soil moisture conditions and lower flooding-related disruptions to support output in the country.

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

Original content

KUALA LUMPUR (Dec 28): Malaysian benchmark crude palm oil (CPO) spot prices will average US$850 (RM3,763.80) per tonne in 2023, significantly lower than US$1,175 per tonne in 2022, according to Fitch Ratings. In a statement on Tuesday (Dec 27), the rating agency said benchmark prices have rebounded to above US$850 per tonne in the fourth quarter of 2022 (4Q2022), from the end-September level of around US$700 per tonne. “We expect prices to strengthen further in 1H2023 (the first half of 2023) to above the US$900 per tonne level. “The outlook for palm oil demand growth has been boosted by Indonesia’s decision in December 2022 to increase the share of palm-oil based fuel in diesel. “However, we expect supply to increase from 2Q2023 and cause prices to drop in ...

Source: Theedgemarkets