Malaysia: Palm oil prices seen buoyed by tighter output and high demand, MPOC says

The Malaysian Palm Oil Council (MPOC) anticipates that crude palm oil prices will remain stable due to reduced production and robust demand from India and China. Malaysia's benchmark prices are expected to range between 3,800-4,200 ringgit a metric ton in the latter half of 2024. The production growth in Malaysia and Indonesia is predicted to slow down due to a high base effect, with a combined supply deficit of 200,000 tonnes. Malaysian palm oil production is projected to grow by 2.4% to 19 million tons in 2024, while exports are expected to increase by 3.1% to 15.6 million tons. The country's palm oil inventory is likely to remain low, with an estimated two million tons by December.

Crude palm oil prices are expected to remain supported by tighter production conditions and strong demand from top buyers India and China, state agency Malaysian Palm Oil Council (MPOC) said, according to a report by business daily The Edge Malaysia. Malaysia’s benchmark prices are seen trading within a range of 3,800-4,200 ringgit a metric ton in the second half of 2024, MPOC chief executive Belvinder Kaur Sron told the Edge in an email interview. The momentum of Malaysia’s palm oil production growth was expected to slow in the second half of the year due to a high base effect, after output levels in the same period in 2023 rose to the highest since 2018, she said, according to the Edge. The combined palm oil production of Indonesia and Malaysia, the world’s top two producers of the commodity, also showed a supply deficit of 200,000 tonnes. From January to April 2024, Malaysian palm oil production increased by 440,000 tonnes, while Indonesia’s production decreased by 640,000 ...