Malaysia: Palm oil prices to rise 4% in 2024 due to strong demand for biodiesel and stagnant production, survey

Malaysia's crude palm oil (CPO) prices are expected to rise in 2024 as stagnant production despite growing demand for biodiesel offsets the impact of increased production of rival oils, a Reuters poll showed. Benchmark palm oil prices FCPOc3 will average RM3,950 ($837.93) per metric ton in 2024, up 4.06% from 2023, according to the average estimate of 18 analysts and industry participants. Last year, average prices fell by 23%. "The key factor that will impact the CPO price this year is the implementation of the B35 biodiesel mandate in Indonesia, which is expected to limit global palm oil supplies to the export market," said Ahmad Parwiz Ghulam Kadir, director general of the Malaysian Oil and Gas Council. palm oil. The Indonesian Palm Oil Association (GAPKI) said Indonesian palm oil exports will fall by about 4% this year to about 29 million metric tons as domestic consumption rises with the mandatory addition of 35% palm oil-based biodiesel. Dry El Niño weather starting in the ...