PALMOILMAGAZINE, KUALA LUMPUR – Plantation analysis predicts that crude palm oil (CPO) prices will remain stable between RM 3,800 and RM 4,000 per ton for 2024-2025. This stability is expected despite a rise in palm oil stock in Malaysia, which reached 1.88 million tons in August 2024—the highest in the past six months. The increase in stock is attributed to higher seasonal production and reduced exports.
According to The Star, as quoted by Palmoilmagazine.com on September 18, 2024, Hong Leong Investment Bank (HLIB) suggests that palm oil stocks may continue to rise this month due to the ongoing plantation cycle. However, exports could decline as palm oil struggles to compete with seeds and other vegetable oils.
HLIB also noted a significant narrowing of the CPO discount to soyoil, from US$ 161 per ton in July to US$ 24 per ton in August 2024. This shift reflects decreasing exports from Malaysia to key markets such as China, India, the Middle East, and the European Union.
Also Read: MIDF Research Predicts CPO Can Be Cheaper in July
Despite this, data from Intertek Services indicates a 9.2% increase in palm oil exports during the first five days of September compared to the previous month, driven by higher deliveries to Asia Oceania, China, the European Union, India, and the Middle East.
HLIB Research also maintained its CPO price projection at RM 4.000 per ton this year and RM 3.800 per ton in 2025 with the average price this whole year at RM 4.011 per ton. On the other hand, the research institution recommended IOI Corp Bhd as one main investment option with the price target at RM 4,22, and Hap Seng Plantations Holdings Bhd with the target at RM 2,21. (P2)
