News

The Malaysian Palm Oil Board expects prices to fall in April under pressure from reduced demand

Palm Kernel Oil
Vegetables
Market & Price Trends
Published Mar 21, 2024

Tridge summary

The Malaysian Palm Oil Board (PMOB) anticipates a drop in crude palm oil (CPO) prices to RM3,800-4,000/t by April 2024 due to an increase in soybean oil supplies from South America and a rebound in Malaysia's palm oil production. Despite the predicted decrease, palm oil is currently trading at a premium due to a supply shortage. High prices have, however, resulted in reduced imports from India and China. While global palm oil production is expected to see a marginal growth of 0.11% in 2024, production of soybean oil, rapeseed oil, and sunflower oil is expected to increase by 2.88%, 3.48%, and 3.94% respectively.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

The Malaysian Palm Oil Board (PMOB) forecasts that crude palm oil (CPO) prices will return to the range of RM3,800-4,000/t in April 2024 (from the current RM4,250/t) under pressure from active soybean oil supplies from South America and gradual seasonal recovery of palm oil production in Malaysia. The premium for palm oil compared to other vegetable oils has outpaced soybean and sunflower oil prices on the European market since February. According to MROS, palm oil currently trades at a premium of $40-95/t compared to competing oils, and its prices, against the background of a shortage of offers, have risen to an annual maximum and are 10% above the price level of February 2023. At the same time, palm oil stocks in Malaysia in February fell by another 5% to the lowest level since July 2023 of 1.919 million tons against the background of reduced imports and stable domestic consumption. According to MROS forecasts, in 2024 the global production of palm oil will grow by at least ...
Source: Graintrade

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