Palm Oil Sector in 2023: Still Haunted by uncertainty

Palm Oil Sector in 2023: Still Haunted by uncertainty

Credit: Sawit Fest 2021/M Rizki Herliansyah

Palmoilmagazine.com, PETALING JAYA - Oil World in its latest report predicted that crude palm oil (CPO) production would increase about 2,9 million tons to be 80,2 million tons in October 2022 to September 2023. The numbers would be higher than those in 2021/2022 which reached 1,2 million tons in the same period.

Oil World also revealed, Indonesia would be still leading the increasing production about 2,2 million tons to be 47,7 million tons, after that Malaysia would escalate its production 300.000 tons to be 18,5 million tons, and other countries in the world would increase CPO production about 400.000 tons to be 14 million tons.

The supply ration projection of palm oil use would be 20,0% in 2022/2023. The numbers would be lower than those in 2021/2022 which reached 20,4%, much further than the average numbers in every five – year which reached 18,7%.

In its latest report, Maybank Investment Bank (Maybank IB) did project that plantation sectors would have no many breakthroughs because of uncertainty and challenge ahead.

“There is uncertainty about supply prediction that the markets made it normal because La Nina still threatens. This is the third year in a row though the weather might change to be neutral by the late of first quarter of 2023 and it is not clear yet about palm oil planting in Malaysia if the country would have enough foreigners to work at plantation sectors this year to escalate its production,” Maybank IB reported in the research as quoted from StarBiz. (T2)

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