Malaysian palm oil prices to drop on higher global vegetable oil output

News Image

By MG News | March 27, 2024 at 01:45 PM GMT+05:00

0:00

March 27, 2024 (MLN): Malaysian benchmark crude palm oil (CPO) prices are poised to weaken from 2Q2024 on higher vegetable oil supply globally, says Fitch Ratings.

The credit rating agency believes that mild weather conditions and lower fertilizer costs will support output growth and sustain pressure on prices over the next 12-18 months.

Fitch’s benchmark price assumption for 2024 and 2025 is $700 per tonne (t).

It further foresees two key upside risks for CPO prices. First, poor weather conditions, due to a strong El Nino or La Nina event in the next 12 months. Second, a higher mandatory biodiesel blending ratio in Indonesia which will increase CPO consumption significantly.

Benchmark CPO spot prices have risen through 1Q2024 to above $900 per tonne by March 2024, from below $800 per tonne in December 2023, due to relatively low palm oil inventories in key producers Indonesia and Malaysia, and market concerns on global vegetable oil output.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 130,344.03
345.79M
1.67%
2144.61
ALLSHR 81,023.99
1,021.87M
1.55%
1236.37
KSE30 39,908.26
141.62M
2.05%
803.27
KMI30 189,535.00
150.29M
1.40%
2619.39
KMIALLSHR 54,783.66
508.76M
1.07%
581.78
BKTi 34,940.73
55.86M
4.37%
1464.05
OGTi 28,296.06
16.02M
1.19%
333.47
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 107,925.00 108,430.00
105,440.00
2175.00
2.06%
BRENT CRUDE 67.74 68.10
66.94
0.63
0.94%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
0.75
0.78%
ROTTERDAM COAL MONTHLY 108.25 110.00
108.25
0.75
0.70%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.10 66.43
65.23
0.65
0.99%
SUGAR #11 WORLD 15.74 15.97
15.71
0.04
0.25%

Chart of the Day


Latest News
July 02, 2025 at 05:29 PM GMT+05:00

CDNS revises profit rates on savings schemes


July 02, 2025 at 05:05 PM GMT+05:00

PSX in FY25: From Oof to Boom


July 02, 2025 at 05:01 PM GMT+05:00

Gold price in Pakistan falls Rs600 per tola


July 02, 2025 at 04:35 PM GMT+05:00

Oil gains slightly as market eyes Iran, OPEC+ moves


July 02, 2025 at 04:02 PM GMT+05:00

PSX Closing Bell: Record Breaker



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg