The crude palm oil (CPO) price in 2023 is expected to range between RM4,000 and RM4,200 per tonne compared with RM5,087.50 per tonne in 2022, said Malaysian Palm Oil Board director-general Ahmad Parveez Ghulam Kadir. In his presentation at the Review and Outlook Seminar 2023 January 12, he said Malaysia’s oil palm industry is set to continue its impressive performance this year amid strong demand and higher CPO production.

“The key drivers that will influence the prices of CPO are labour availability, which is still an issue, lower sunflower seed production from Ukraine due to the ongoing war with Russia, and higher imports of palm oil by China as it loosens its Covid-19 rules. “Other factors include Indonesia’s production of CPO, its biodiesel mandate to B35, and its tightened export policy,” he said. “Effective February 1, 2023, Indonesia will impose a higher biodiesel blending mandate, B35 from B30, and this is likely to increase domestic consumption of palm oil. These latest policy changes would further restrict the global palm oil supply. “Hence, demand for Malaysian palm oil is expected to rise which will eventually assist in reducing higher domestic palm oil stocks,” Ahmad said. He also noted that concerns over soybean oil supply risks due to dry weather patterns in Argentina and southern Brazil are also factors that will influence the prices of the Malaysia CPO. “Even though there are ...

Source

UkrAgroConsult

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