Crude palm oil prices dropped pressured by persistent doubts over demand
22.03.2023 (Investing) - Crude palm oil prices dropped pressured by persistent doubts over demand, sharp pullbacks in rival vegetable oils, and a strong Malaysian ringgit. Rapeseed and sunflower oil prices declined after Russia and Ukraine extended their deal to secure grain trade through the Black Sea, pressuring other vegetable oils. Also, crude oil prices sank amid turmoil in the global financial sector and an unexpected build in US inventories, denting demand for biofuel feedstock. Meanwhile, India's palm oil imports in February dropped 30% from the previous month to their lowest in eight months, as an increase in stocks due to excessive imports during November-January underpinned weak demand in recent weeks.
Indonesia palm oil production for 2023/24 is forecast at 46 million metric tons (MMT), an increase of 3% from the previous year. Weather agencies are forecasting a developing El Nino weather pattern in the second half of 2023 that might bring on severe dryness. Soybean imports are expected to rise to 2.65 MMT for 2023/24 on continued rising demand from the soybased food industry.