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FITCH: 2021 CPO Average Price is Still Better: 2020 Would Decrease

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FITCH: 2021 CPO Average Price is Still Better: 2020 Would Decrease

InfoSAWIT, KUALA LUMPUR - Fitch Solutions Country Risk and Industry Research predicted, crude palm oil (CPO) could be RM 4.200 per ton in average in 2021 to the previous prediction which was RM 3.800 per ton.

By the late of October 2021, Fitch reported that the institution revised 2022 CPO price prediction. There is significant correction in 2022 CPO average price – RM 3,400 per ton from the previous reaching RM 3,200 per ton.

Fitch also mentioned, there will be competitive markets by the 2021 fourth quarter to 2022 first quarter. It happens for having no workers help in Malaysian palm oil plantations. Fitch also claimed, import demands will remain better because other vegetable oil price gets increasing too.

Still based on the report, Fitch reported, in 2022, it is predicted that palm oil would have good news because Malaysia might lose some migrant workers travel as vaccination in the country gets better. “We also know that it takes time to escalate the numbers of production,” Fitch reported.

Expensive CPO price will influence the demands. 2022 consumption prospect will not be running good in few months. Fitch also reported, consumption progress would be slowing down in 2022 to be 2,7% globally if compared to last year. (T2)