KUALA LUMPUR, Feb. 20 (Xinhua) -- Recent crude palm oil (CPO) strength has prompted upward revision from BMI Country Risk & Industry Research.

BMI, a Fitch Solutions unit, said in a note on Monday that it has made an upward revision to its forecast for the average price of Bursa Malaysia-listed third-month palm oil futures contracts in 2024, from 3,515 ringgit (733 U.S. dollars) per ton to 3,750 ringgit per ton.

This reflects the subsequent persistence of price strength that started in the third quarter of 2023, which saw contracts rise by 23.2 percent between start-June and start-September.

"Our revised forecast, however, does still point to a softening of prices from their current levels through 2024, with palm contracts having traded at an average level of 3,830 ringgit per ton through 2024 up to Feb. 14," it said.

In the short term, BMI considers palm oil prices to be capped in light of price trends in the wider edible oils complex, expectations for large soybean harvests in major producers, and weak demand in China.

Moreover, the impact of the El Niño event, now expected to dissipate between April and June 2024, on cultivation conditions in Indonesia and Malaysia is thought to be quite subdued. (1 ringgit equals 0.21 U.S. dollar) Enditem

Related

Go to Forum >>0 Comment(s)