February 14, 2024 (MLN): The price of Malaysian Palm Oil is expected to increase in the near term as stockpiles in the country are forecasted to decline, according to market analysts.
The benchmark palm oil contract is currently trading at 3,940 ringgit a ton, up by 1% on the day.
Palm oil is on track to achieve its third consecutive victory, surging by 1.7% in these victorious sessions.
Maybank Investment Bank said in a note on Wednesday that it posited that the Palm oil stockpile in Malaysia is expected to dip below 2 million tons by end-February, and it reiterated its view that CPO prices may briefly go above 4,200 ringgit ($878) per ton in February/March, as APP reported
It is noted that the January stockpile declined seasonally to 2.02m tons, and came in below the street's estimates of 2.09m tons.
The lower stockpile was due to resilient January exports of 1.35m tons while production continues its seasonal decline to 1.4m tons.
Having said that, the research house opined that CPO prices should trend lower by mid-2024 due to the availability of new South American harvests, and anticipation of CPO output recovery in the second half of 2024.
