OCBC Global Research revises CPO palm oil price for 2024

OCBC Global Markets Research has revised its crude palm oil (CPO) prices for 2024 to an average of RM3,650 per tonne, from the previous estimate of RM3,400. In its monthly commodities review, the research firm said the upward price revision reflects rising supply risk as El Niño weather events continue into 2024 with moderate but increasing intensity. Both the Malaysian Palm Oil Board (MPOB) and the Indonesian Palm Oil Association (GAPKI) expect production to remain largely flat this year due to the El Niño disruption. Additionally, Indonesia's efforts to increase its use of biofuels could potentially reduce palm oil exports. A smaller price spread between palm oil and other vegetable oils could further encourage biofuel blending. Admittedly, OCBC Research said the intensity and duration of El Niño will remain a wildcard in the coming months. "As it stands, we expect the CPO price to fluctuate within a range in the near term due to reduced discounts on palm oil compared to other ...