Palm oil prices in Vietnam may fall from March 2022 due to increased production in the top two producing countries

Published 2021년 10월 7일

Tridge summary

The article explains the ongoing rise in crude palm oil prices, marking the third year of consecutive increase, with prices nearly a quarter higher due to the pandemic-induced labor shortages in Malaysia, the world's second-largest producer. The record high price of 4,560 ringgit/ton reached in mid-August 2021 has led to reduced demand in major cooking oil consuming countries. The prices are anticipated to rise further over the next five months due to high export taxes in Indonesia and expected tight palm oil supplies in early 2022. However, prices are expected to decline in the latter half of 2022. Malaysia's palm oil production is expected to recover after Ramadan in 2022, with a potential increase in output if the labor crisis is addressed. Meanwhile, Indonesia's production is projected to increase by at least 1 million tons in 2022, contributing to a global surge in palm oil supply by 2.5 million tonnes in the 2021/22 season, driven by increased demand for food and fuel.

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Original content

2021 is the third consecutive year of increase in crude palm oil prices, with an increase of nearly a quarter due to labor shortages during the pandemic, which has reduced output in Malaysia, the world's second largest producer. In mid-August 2021, the price of palm oil reached a record of 4,560 ringgit/ton, affecting demand in some major cooking oil consuming countries in the world. Indonesia's high export taxes, coupled with tight palm oil supplies expected in early 2022, make prices more likely to rise over the next five months. Mistry, director of Indian consumer goods company Godrej International, predicts palm oil prices will be between 4,000 and 4,400 ringgit between October 2021 and February 2022 before tapering off in March 2022. He added that in the period from April to September 2022, the price will end its uptrend and will fall from 3,800 ringgit to 3,200 ringgit. Palm oil production in Malaysia will only recover after the Muslim holy month of Ramadan in 2022. The ...

Source: Vinanet