Analyst sees slower output to boost crude palm oil prices
Analyst sees slower output to boost crude palm oil prices
Crude Palm Oil (CPO) prices should remain elevated in the short term due to slower output, a Malaysian research house said on Monday.
MIDF Research had said in a note that, with the expected slower recovery in Malaysia’s output amid low stock level, it anticipated the average CPO price to stabilise at 4,815 ringgits (1,067 dollars) per tonne.
“It is crucial to note the slower palm oil production growth in Malaysia and Indonesia and the potential palm oil export ban to La Nina event and biological tree rest.
“This could pose risks to palm oil supply availability in the first quarter to the second quarter of 2025,’’ it said.
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This would create a favourable trajectory for CPO prices, potentially driving them from 4,500 ringgit per ton to nearly 5,000 ringgit per ton in the second quarter, it projected.
Looking ahead, the MIDF opined that biological tree rest and a slower-than-expected recovery in output would persist.
It noted that the local production is projected to grow by only 1 per cent year on year to 19.5 million tonnes in 2025.
It noted the continuation of an adverse weather event, such as La Nina and North-East Monsoon (Nov-Mar), could further impact crop productivity. (1 ringgit equals 0.22 dollars) (dpa/NAN)
