InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) will be in fluctuation because of the close stocks. Malaysia has not good progress to solve the lack of workers and the government’s policy about green energy and food security that trigger increasing demands.
According to opinion that Reuters conducted to 18 analysts in related industries, CPO reference price could be about RM 4.000 per tons in 2022 or gets cheaper 3,4% from last year which was RM 4.142. Last year it was once RM 5.380 per tons as the most expensive one. But it is predicted CPO will be expensive until the first quarter this year.
Regional Head of LMC International, Julian McGil said, many palm oil plantations are in small production. “The stocks will be limited and urge sustainable demands,” he said, as quoted from Reuters.
From the opinions, palm oil production in Indonesia and Malaysia will be increasing in 2022 for the first time in the last three years.
Indonesia could be producing about 48,5 million tons or increases about 3,4% from last year prediction which reached 46,89 million tons.
Malaysia could produce about 18,8 million tons or increases about 3,9% from 18,1 million tons in 2021.
Respondents predicted CPO production will be increasing in the second semester this year namely in Malaysia namely if foreign workers could work in the country. But La Nina and minimum fertilizers for the last three years may limit the stocks. (T2)