August 02, 2023 (MLN): Malaysian palm oil rose significantly on Wednesday amid expectations that India and China will import a combined total of 16.5 million tonnes of palm oil by December 2023, up from 15 million tonnes in 2022.
The benchmark palm oil contract is up by 1.52% to 3,931 ringgit a tonne.
It is worth noting that the palm oil contract witnessed a significant decline of 2.35% in July to close at 3,878 ringgit a tonne.
Malaysia’s crude palm oil prices will trade at 3,700-4,200 ringgit a metric ton in the second half of 2023, and will remain supported in the long term, state agency Malaysian Palm Oil Council (MPOC) said on Tuesday, as Reuters reported.
Heading into 2024, there is a strong possibility that prices may rise above 4,300 ringgit ($952.38) a metric ton, MPOC deputy director Mohd Izham Hassan said in a webinar.
Production in the world’s second-largest producer during the first half of 2023 was nearly 3% lower than in the same period last year, Mohd Izham added.
Malaysia’s benchmark crude palm oil futures have declined 7% so far this year.
They traded around 3,882 ringgit ($859.80) on Tuesday, as traders weighed a decline in rival soft oil prices and supply concerns.
“ASEAN and MENA regions will also see higher demand for palm oil due to insufficient domestic production and competitive price of palm oil,” Mohd Izham further stated.
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Posted on: 2023-08-02T11:59:14+05:00