Malaysian palm oil prices likely to fall after Ramadan, says Mistry
Malaysian palm oil prices are expected to decline post-Ramadan due to increased production, says analyst Dorab Mistry. Prices may trade between RM3,600 and RM4,100 per tonne from April to November, after staying firm at RM4,000–RM4,600 until March. Global stagnation in production and rising demand impact pricing, while Indonesia’s biodiesel expansion may affect supply.
KUALA LUMPUR (Feb 26): Malaysian palm oil prices are likely to fall after the Muslim holy month of Ramadan due to a pickup in production, industry analyst Dorab Mistry said on Wednesday.
Palm oil will likely trade between RM3,600 and RM4,100 ringgit per metric tonne from April to November, Mistry told a palm oil conference in Kuala Lumpur.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was trading around RM4,566 per tonne in early deals on Wednesday.
Asia plays a central role in the global efforts to achieve net zero and the speed and trajectory of the global energy transition are now more urgent than ever.
“After Ramadan I expect a significant pickup in production and a slide in prices, which will eventually make palm once again competitive,” he said.
However, he said palm oil is likely to remain firm and trade between RM4,000 and RM4,600 between now and the end of March.
Global palm oil production has been stagnating, even as demand for food and biofuels rises by nearly two to three million tonnes per year, he said.
This slower production growth has kept palm oil prices relatively high, which is not conducive to demand expansion, he added.
Top palm oil producer Indonesia, which has decided to implement the B40 biodiesel mandate in 2025 and aims to increase blending to B50, needs to lift the moratorium on palm plantations and expand plantations sustainably, he said.
“It is wrong and cruel to subject three to four billion consumers in the developing world to higher prices by restricting production under this moratorium,” Mistry said.
India’s rapeseed production this year is likely to be slightly lower than 2024, which could force the country to increase cooking oils imports by nearly 4% to 16.6 million tonnes in the 2024/25 marketing year ending in October 2025, he said.
China’s vegetable oil consumption is likely to remain flat in 2025, he said.
To read more about Edible Oil News continue reading Agriinsite.com
Source : The Edge Malaysia
