Malaysia: Slight recovery for palm oil

Published 2023년 1월 4일

Tridge summary

The Malaysian palm oil market is expected to remain uncertain and grow slightly in 2023 due to global economic slowdown, weather uncertainties, and war in Ukraine, according to the Malaysian Palm Oil Board. Lower CPO prices are anticipated due to higher supply of global oils and fats, but production recovery is also expected. The market remains uncertain due to potential impacts of La Nina, lower-than-expected CPO yield, and higher biodiesel mandate by Indonesia. Challenges such as amendment of Renewable Energy Directive (RED II), European Green Deal, and allegations of forced labour practices continue to affect the industry. Labour shortage has led to mechanisation, automation, and digitalisation of processes, but requires heavy capital investment.

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

Original content

The Malaysian palm oil market is expected to remain uncertain and experience only a little growth in 2023. This is due to concerns of global economic slowdown and uncertainties in weather patterns, the impact of war in Ukraine as well as the risks of inflation, said Malaysian Palm Oil Board (MPOB) DG Datuk Ahmad Parveez Ghulam Kadir. Crude palm oil (CPO) prices are expected to be lower this year on expectations of weaker prices of other competing oils due to higher supply availability of oils and fats in the global market, as well the strengthening of the ringgit against the US dollar. “There will be a high volume of CPO production, driven mainly by favourable weather conditions and improvement in the labour situation as the application for foreign workers has been approved in stages,” Ahmad Parveez told The Malaysian Reserve (TMR). Meanwhile, Maybank Investment Banking Group Research (Maybank Research) said there would be some palm oil production recovery in 2023. “Oil World, in ...

Source: UkrAgroConsult