Malaysian palm oil prices seen falling 23% in 2023 as output rises and Indonesia keeps supply tight

Published 2023년 1월 23일

Tridge summary

Palm oil prices in Malaysia are predicted to decline for the first time in three years in 2023, with benchmark prices expected to average 3,800 ringgit a tonne, a 23% decrease from the previous year's record average. This drop is due to a mild recovery in production and a rise in global demand, despite ongoing impacts from the Russia-Ukraine conflict and the pandemic. Top producers, Indonesia and Malaysia, are expected to see a slight increase in production, but global supplies are still expected to be tight due to high demand and limited competition. Factors such as the recovery of China's demand, concerns about a global recession, and the potential impact of El Nino on edible oil production will be key for the market in the coming months.

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

Original content

Malaysian palm oil prices are set to fall for the first time in three years in 2023 amid a mild recovery in production, but will likely remain above pre-pandemic levels as Indonesian policies constrict global supplies, Reuters poll showed. Benchmark palm prices will average 3,800 ringgit a tonne in 2023, down 23% from last year’s record average of 4,910 ringgit, according to the median estimate of a poll of 18 analysts and those in the industry. “The Russia-Ukraine conflict and economic affects of the pandemic will continue to impact the market in 2023. However, we feel that the severity of the volatility will be less as compared to the last year,” Malaysian Palm Oil Council marketing director Faisal Iqbal said. SLOW PRODUCTION Top producers Indonesia and Malaysia are expected to see a marginal rise in production just as global demand is forecast to rise, with China relaxing its COVID-19 restrictions and India increasing imports. China and India are the world’s biggest palm oil ...

Source: Hellenic Shipping News