PALMOILMAGAZINE, KUALA LUMPUR – Crude palm oil (CPO) prices in Malaysia could rise to between Rp 12,100 and Rp 13,000 per kilogram (kg) by the end of this year, according to industry analysts.
David Ng of Iceberg X Sdn Bhd stated that CPO prices are currently stable at around Rp 11,900 per kg and are likely to increase in the short term. He explained that slower production could reduce overall stock in Malaysia, putting upward pressure on prices. Additionally, rising demand from India is expected to be a key driver of the price increase.
As quoted by Palmoilmagazine.com from bharian.com.my on Thursday (5/9/2024), recent CPO price hikes can be attributed to low production levels in Malaysia, geopolitical tensions in the Middle East, and the U.S. Federal Reserve’s interest rate cuts.
Also Read : Malaysian Palm Oil Stocks Reach 7 Month Low in February 2024
Last week, the September 2024 CPO contract price rose above Rp 13,000/kg, closing at Rp 13,063 per kg. The reference contract for November 2024 closed at Rp 12,745 per kg.
RHB Research reported that palm oil stock in Malaysia got decrased 5,4 percent to be 1,73 million tons because of the increasing exports but not balanced by the increasing production. The company also predicted the inventory would be recovered in phase and might be reaching two million tons heading to the late of this year except, there would be unexpected weather issues.
The traders also waited for the latest progress from Indonesia and India about export and import tax policy that would have something to do with the trade.
RHB Research maintained its ‘neutral’ opinion about CPO price with the assumption at about Rp 12.500 per Kg in 2024 and Rp 12.100 per Kg in 2025.
It means, the exchange price in Malaysia would get increasing price of the first month in the last three months. It would happen for more expensive vegetable oils and geopolitic factors that had something to do with the trade. (P2)
