PALMOILMAGAZINE, KUALA LUMPUR – In October 2023, there is optimism that the price of crude palm oil (CPO) could surpass its September levels, which saw it at a lower price point. As many buyers and traders engage in negotiations, CPO prices may range from around RM 3,750 (approximately US$ 798) to RM 4,000 (equivalent to US$ 851).
While there is hope for an improvement in CPO prices, certain key factors could contribute to a more robust bullish trend.
As quoted from PalmPulse published by Malaysian Palm Oil Council (MPOC), the first factor could be the high palm oil stock in Malaysia which still reaches more than 2 million tons and it is predicted the stocks remain high by the late of 2023. “Over supply could press CPO price because of the stable demands to balance overstock,” PalmPulse noted.
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The second factor could be CPO price pressure because it has something to do with soyoil trade. United States of America (USA) starts planting soyoil in September 2023 while South America projected, soyoil could increase its production up to 15,5% next year. The increasing soyoil supply could reduce CPO as the alternative oil in vegetable oils.
The third could be sunflower oil which would be more economical than CPO in Europe. This could be a serious competitor for CPO and would be negative for CPO price because many consumers would prefer cheaper sunflower oil.
Though CPO price could be better, such factors could be potentially getting strong bullish in this very short. (T2)
