MPOA: Malaysian palm oil prices to remain at RM4,000

Published 2023년 3월 13일

Tridge summary

The Malaysian Palm Oil Association (MPOA) predicts that the country's crude palm oil benchmark prices will remain stable at RM4,000 ($885.15) per tonne due to a market surplus. This is attributed to an anticipated increase in production in both Malaysia and Indonesia, the world's largest and second largest producers respectively. Factors such as damage to oil palm root systems from La Nina, the presence of unproductive, tall oil palms, and high replanting costs are expected to limit supply. In Sabah, the largest palm oil producing state in Malaysia, over half a million hectares of oil palms are over 19 years old, requiring replanting.

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Original content

Malaysian crude palm oil benchmark prices are expected to remain at RM4,000 ($885.15) per tonne in the near term due to market glut, the Malaysian Palm Oil Association (MPOA) said. Production at the world's second largest producer in 2023 is projected to increase to 19 million tons from 18.5 million tons last year, the MPOA said. At larger producer Indonesia, production is expected to rise to 48.3 million tons in 2023 from 46.8 million tons last year. "Over the past three years, La Nina has caused significant damage to oil palm root systems, which may take time to recover, even with continued root fertilization," Joseph Thek, MPOA's chief executive, said in a statement. "The growing number of overripe and very tall oil palms in Malaysia will also continue to limit supply as replanting is slow due to high costs," he said. In Malaysia's largest palm oil producing state, Sabah, 36% or more ...

Source: Oilworld