CPO price expected to be between 3800/4200 ringgit per tonne in the second half

09-Jul-2024 11:44 AM

Kuala Lumpur. The CEO of the Malaysian Palm Oil Council (Empoc) says that during the second half of the current year i.e. July-December 2024, crude palm oil (CPO) can be traded at a price level of 3800-4200 ringgit per tonne,

while the production scenario will remain the main factor in price fluctuations. Malaysian palm oil production may see a slight decline in the growth rate in the second half of January to December 2023 as it will be compared with the second half of the year 2023 when there was a strong increase in CPO production.

Data for the first four months of the year 2024 shows that the combined production of palm oil in the world's two largest producer and exporter countries - Indonesia and Malaysia - declined by about 2 lakh tonnes.

Under this, during January-April 2024, palm oil production in Malaysia increased by 4.40 lakh tonnes while Indonesia's production declined by 6.40 lakh tonnes.

According to the CEO, the price of palm oil is expected to remain high due to slow growth in production in Malaysia and Indonesia and stable demand in top importing countries like India and China.

If the rule to increase the use of palm oil in biodiesel production to 40 percent in Indonesia is implemented in the year 2025,

then the global supply and availability situation of this important vegetable oil may become even more complicated. Heavy export of palm oil from Malaysia will continue.