PALMOILMAGAZINE, KUALA LUMPUR – Based on a report from Kenanga Research, a Malaysian research company, the price of crude palm oil (CPO) is projected to be higher than the previous prediction of RM 3,700 per ton in 2023/2024.
The factors of the increasing price could be from El Nino that might happen by the late of 2023 or the early of 2024. Kenanga Research also mentioned, fresh fruit bunch (FFB) production could be increasing seasonally in July and the peak would be in September or October 2023.
“If it (El Niño) happens, we predicted, the vegetable oil surplus would be less in 2024 and could be deficit. CPO production could be decreasing only 2 (two) percent in 2025. It means, CPO price could be at RM 3.700 per ton in 2023 – 2024,” the institution mentioned, as Palmoilmagazine.com quoted from the release on Friday, (14/7/2023).
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The report also mentioned, the threat of El Niño would encourage the cheaper vegetable oil but the company did not increase CPO price at about it is hoped at RM 3.500 to RM 4.000 per ton.
Kenanga Research is still ‘neutral’ in plantation sector because there is not certain threat of El Nino. (T2)