PALMOILMAGAZINE, KUALA LUMPUR – In March 2024, the price of crude palm oil (CPO) surged, reaching a peak of RM 4.327 per ton. However, the Malaysian Palm Oil Council (MPOC) anticipates stability in the range of RM 4.000 to RM 4.200 per ton for the current month.
The April 2024 edition of Palm Pulse outlines key factors affecting CPO trade identified by MPOC. These include rising palm oil production, increased imports, and the recovery of vegetable oil prices. The expected higher palm oil production in April may counterbalance price increases, a trend typically observed with production and supply peaking in February or March following higher prices in November.
MPOC notes a rise in vegetable oil imports in India and China in the coming months to counter potential bearish sentiment due to increasing stocks and production. Import levels in these countries had hit a low since November 2022, largely due to significant decreases in imports earlier.
Also Read: MPOC Optimistic for CPO Price in 2024 to be in the Range of RM4000 per Metric Tons
As reported by Bernama, sunflower oil, which was inexpensive from January to March 2024, is expected to improve in the short term. However, increased sunflower production in the Black Sea region may lead to decreased production from April to September 2024, potentially alleviating price pressures.
February 2024 data revealed a four-month consecutive decline in palm oil stocks in Malaysia, with a 5.0% decrease month-on-month and 9.4% decrease year-on-year. Despite significant increases in palm oil exports and consumption in the country during the first two months of 2024, production growth was limited, indicating that demand growth outpaced supply growth.
Overall, the palm oil trade in April 2024 is expected to be supported by various factors such as production, imports, and demand. The predicted stable prices by MPOC are anticipated to maintain balance amidst challenges and changes in global trade dynamics. (T2)
