Palm oil supply disruptions due to storms to continue until Q1 2023, Malaysia says
15/11/2022 (Hellenic Shipping News) - Disruptions to crude palm oil supplies because of tropical storms are expected continue into the first quarter of 2023 , keeping prices upbeat in the near-term,Malaysia’s industry officials said.
“Market price is anticipated to remain strong over concerns of bad weather affecting production in both Malaysia and Indonesia,” Malaysian Palm Oil Board director-general Ahmad Parveez Ghulam Kadir said in a presentation.
The supply and demand balance of palm oil is expected to remain uncertain next year due to shifts in weather patterns, the labour situation, currency volatility and policy and geopolitical instability, Ahmad Parveez said.
The Malaysian Palm Oil Council (MPOC) said flood-related supply worries combined with a weaker ringgit will keep prices of the edible oil between 4,000-4,400 ringgit a tonne until the end of the year.
Prices will ease to 3,900-4,300 ringgit until March 2023, and slip further to 3,800-4,200 ringgit in the second quarter, said MPOC chief executive, Wan Aishah Wan Hamid.
Malaysia’s benchmark crude palm oil prices FCPOc3 hit record highs earlier this year as Russia’s invasion of Ukraine disrupted global edible oil supplies, but prices have corrected by about 40% since.
The futures contract eased to 4,268 ringgit ($929.04) during early trade on Monday.- Reuters