Next year, global palm oil prices may rise on the back of stagnant production in Indonesia and Malaysia, as well as due to the actively growing demand for “palm” from the biofuel sector. This is reported by the American information agency S&P Global Platts.
A survey of a number of industry experts found that by the end of the first quarter of 2024, crude palm oil futures in Malaysia will be around 4,000 ringgit per ton (€785). This year’s average is at 3,800 ringgit (-23% by 2022).
“Global palm oil production in the 2023/24 season is expected to grow at the slowest pace in four years,” said Thomas Milke, head of Germany-based analyst company OilWorld in Hamburg.
According to experts, next year the sector will also be affected by the El Niño weather phenomenon. Meanwhile, palm oil will continue to see steady demand from the food market, although India and China will reduce purchases, according to Nagaraj Meda, head of consultancy TransGraph.
“El Niño remains a key driver for crude palm oil prices in 2024,” said CIMB Investment Bank plantation analyst Ivy Ng.
Recall that the industry will face in 2024 the EU’s deforestation law (EUDR). The EU has previously said it intends to restrict palm oil supplies if products are not certified as free of deforestation during production.
Source: Oleoscope