14/11/2023 (Xinhua), Kuala Lumpur - Analysts have foreseen El Nino weather pattern to support crude palm oil (CPO) prices.

UOB KayHian said in a note on Tuesday that it expects CPO prices to trade between 3,800 ringgit (805 U.S. dollars) to 4,200 ringgit (890 dollars) per ton from December 2023 to the first quarter of 2024.

"This projection is influenced by the intensifying El Nino phenomenon and the constrained supply of alternative vegetable oils," said the research house.

UOB also maintained CPO price assumptions at 4,000 ringgit ton and 4,200 ringgit ton for 2023 and 2024, respectively.

Maybank Investment Bank said in a note on Monday that it raised its 2023/2024 CPO average selling price (ASP) forecasts by 100 ringgit and 200 ringgit to 3,800 ringgit per ton and 3,700 ringgit from its previous forecast.

According to Maybank, a mild El Nino thus far in 2023 may result in a lower-than-anticipated palm oil output in 2024.

MIDF Research said in a note on Tuesday that it forecasts that average local CPO delivery prices to close by 1.7 percent month on month higher to 3,702 ringgit per ton in November, as it tweaked its monthly CPO pricing model assumption due to the delayed arrival of El Nino.

"We anticipate normal production level to remain in the first quarter of 2023, but would gradually decline in drier months in the second quarter of 2024. Hence, this would usher CPO price to hinge on a high side in the first half of 2024," said the research house. (1 ringgit equals 0.21 U.S. dollar)

https://english.news.cn/20231114/181dd43ff53e40c7a6d9efb5c0e63364/c.html