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Malaysia: Fitch Solutions expects CPO palm oil prices to drop to RM4,000 per tonne in 2023

RBD Palm Oil
Malaysia
Published Aug 23, 2022

Tridge summary

KUALA LUMPUR (Aug 22): Fitch Solutions Country Risk and Industry Research anticipates the current downward trend in crude palm oil (CPO) prices to continue in the next four years to a low of RM2,600 per tonne in 2026. The research outfit expects the edible oil prices to decline 23.1% year-on-year to RM4,000 per tonne next year.

Original content

It reasons that the effects of one-off events that occurred in the first half of 2022 — the Russia-Ukraine conflict and the Indonesian palm oil export ban — are to ease further. Its assessment is that CPO prices are to continue their downturn to an average palm oil price of RM3,033 per tonne between 2024 and 2026 in view of consistent annual surpluses set to weigh on prices. It forecasts annual average palm oil prices of RM3,500 per tonne for 2024, RM3,000 per tonne for 2025 and RM2,600 per tonne for 2026, according to a note it issued on Monday (Aug 22). It noted that this forecast is founded on its palm oil production and consumption forecasts, which foresee the global palm oil market to generate an annual production surplus from 2022 to 2026 — rising from 2.5 million tonnes in 2022 and 2023, to 3.9 million tonnes in 2026. It noted that this is still below the record high surplus of 4.5 million tonnes generated in 2017 and 2018. Fitch Solutions noted that palm oil prices touched ...
Source: Theedgemarkets

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