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The 2024 CPO Could be at RM 3.800 per Ton in Average

Doc. InfoSAWIT
The 2024 CPO Could be at RM 3.800 per Ton in Average

InfoSAWIT, KUALA LUMPUR ― According to research institution, Kenanga Research, crude palm oil (CPO) could be at about RM 3.800 per ton in average in 2024, when vegetable oil stocks are abundant.

This showed that the supply and demands or could be deficit for a little bit, CPO stock could be in less than the earlier stock by the end of this year.

“The people that demand vegetable oil happen for the increasing population and income. This would be increasing for about 3 – 4 percent year on year,” Kenanga Research noted, as InfoSAWIT quoted from Bernama, Wednesday (14/2/2024).

But the supply would have something to do with the close regulation, unpredicted weather and even geopolitics situation.

Crude palm oil (CPO) for special, India, as the biggest importer and producer, would manage its exports until the Feast in April. As the biggest importer, India would maintain its big level of supply until the election day in the first semester this year.

RHB Investment Bank Bhd., maintained to remain neutral in plantation sector by expecting that CPO could be more expensive in the first semester this year. The investment bank predicted, the decreasing seasonal production and the El Nino impact would decrease its production for the next couple of months. But the export market could be increasing to anticipate Idul Fitri that could escalate the re-stock because of the decreasing stocks.

Meanwhile, Public Investment Bank Bhd., noted that though the stocks get decreased, CPO could be at certain level for the past months. For February 2024 has 29 days only, the bank predicted the stock would decrease less than psychologic level or two million tons by the late of February. (T2)