PALM NEWS MALAYSIAN PALM OIL BOARD Saturday, 02 Nov 2024

Total Views: 273
MARKET DEVELOPMENT
Analysts foresee better crude palm oil prices in 2024
calendar03-01-2024 | linkHellenic Shipping News | Share This Post:

02.01.2024 (Hellenic Shipping News) - Analysts have foreseen better crude palm oil (CPO) prices in 2024, as El Nino weather is expected to affect palm oil supply.

RHB Investment Bank, the largest investment bank by asset size in Malaysia, said in its recent report that it expects CPO prices to trade higher – crossing the 4,000 ringgit (872 U.S. dollars) per ton mark – as supply should be somewhat affected by El Nino as well as the impact of lower fertilization activities in 2021 to 2022.

UOBKayHian, one of Asia’s largest brokerage firms headquartered in Singapore, also expects CPO prices to trade higher in 2024 with an average price of 4,200 ringgit per ton, following the average of 3,850 ringgit per ton recorded year to date in 2023.

The higher price expectation is also underpinned by potentially lower palm oil production, a challenging outlook for global vegetable oil supply and higher palm oil demand.

Affin Hwang Investment Bank, one of Malaysia’s leading bank-backed investment banking groups, also expects CPO prices to trend higher in 2024, attributable to the El Nino phenomenon that is expected to have an impact on the global supply of edible oils and their prices.

The research house’s CPO price assumption for 2024 is 4,200 ringgit to 4,400 ringgit per ton.

Affin Hwang also expects Malaysia’s plantation sector earnings to jump 24 percent year-on-year in 2024 from a low base in 2023 due mainly to higher CPO price expectations while Malaysia production could be flattish year-on-year. (1 ringgit equals 0.22 U.S. dollar)
Source: Xinhua

https://www.hellenicshippingnews.com/analysts-foresee-better-crude-palm-oil-prices-in-2024/