Palm oil prices set to rise in 2024 as El Nino limits Indonesian production

Published 2023년 9월 28일

Tridge summary

Crude palm oil prices are predicted to rise by at least 11% in 2024 due to anticipated production cuts in Indonesia, the top palm oil producer, caused by El Niño weather conditions. Fadhil Hassan, head of foreign affairs at the Indonesian Palm Oil Association, expects average prices, including CIF Rotterdam, to increase to $1,000 per metric ton from around $900 this year. Reduced supplies of palm oil and rival oils such as sunflower, influenced by the Russian-Ukrainian conflict, will also support higher vegetable oil prices.

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Original content

Crude palm oil (CPO) prices in 2024 are likely to be at least 11% higher on average than this year as El Niño weather conditions are expected to cut production in top palm oil producer Indonesia. the Indonesian Palm Oil Association (GAPKI) said on Thursday. In 2024, average CPO prices including cost, freight and insurance (CIF Rotterdam) could rise to $1,000 per metric ton from about $900 this year, said Fadhil Hassan, head of foreign affairs at the association. Reduced supplies of palm oil and rival oils such as sunflower, which have suffered as a result of the Russian-Ukrainian conflict, will support prices for vegetable oils, including palm, he told reporters on the sidelines of a conference. Palm oil, used in everything from cakes to shampoos and cleaning products, competes with soybean oil, sunflower oil and canola oil, which are produced mainly in Argentina, Brazil, Russia, Ukraine and Canada. Indonesia's CPO production could rise by about 1 million tonnes in 2023 from last ...

Source: Oilworld