CPO Prices Depressed by Weakening Prices of Other Vegetable Oils

Doc. Palmoilmagazine.com

PALMOILMAGAZINE, JAKARTA – According to Oil World, global sunflower oil production is expected to rise by 6.8% in 2022/23, with the latest stocks increasing by 27.2% to reach 4.5 million tons, up from the previous year’s 3.5 million tons.

Furthermore, the combined sunflower oil stocks in India, China, and Turkey for 2022/23 have shown remarkable growth, surging by 151% to 1.43 million tons compared to the 0.57 million tons reported in the previous year.

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This substantial increase in stocks in these three countries could potentially lead to a reduction in sunflower oil imports in the near future.

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As written on PalmPulse published by Malaysian Palm Oil Council (MPOC), one to notice is that the three countries are the biggest sunflower oil importers. Besides, sunflower seed harvest that starts in Russia in September 2023, would be escalating the stocks. This showed that Russia is the significant sunflower oil producer that would make sunflower oil cheaper.

That is why CPO price could be recovering after the decreasing period in September 2023. It would happen because many hunters bargain because of the cheaper Malaysian ringgit.

Meanwhile expensive crude oil because of diesel export ban in Russia, and decision of Saudi Arabia to minimize production until the late of 2023, would deliver support to recover palm oil price, would maintain its price more than its threshold which reaches RM 3.750 (US$ 798).

“But it is a note that the increasing palm oil stock in Malaysia and price pressure in soyoil and sunflower oil production, would limit palm oil price and maintain CPO at about RM 4.000 (US$ 851).” PalmPulse noted. (T2)

Note: Malaysian ringgit: American dollar (US $1 = RM 4,70)

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