Malaysian palm oil prices will be in the range of $790-960 per tonne until the middle of next year, according to industry analyst Dorab Mistri. He says the El Niño weather phenomenon will negatively impact export opportunities amid growing demand for the product from the food processing and biodiesel sectors.
“Palm oil price dynamics will largely depend on the impact of the upcoming El Niño,” he elaborated at the Globoil industry conference in Mumbai.
Hot and dry weather as a result of El Niño usually reduces oil palm yields in major producing countries Indonesia and Malaysia.
According to Mistri, global oil demand from the food and energy sector will grow by 7.5 million tons in MY 2023/24, but only 5 million tons of demand will be “covered”.
He also added that demand growth in the biofuel sector in the new season will occur against the backdrop of increased demand for raw materials from Indonesia and the United States.