Crude palm oil futures declined below RM2,600 per tonne, dragged down by prospects of weak exports in October after recent data showed sales of Malaysian palm oil products fell by 2.12% from a month earlier during Oct 1-15. Earlier in the month, the US banned imports of palm oil from Malaysian company FGV Holdings, one of the world’s top producers, following an investigation into allegations it uses forced labour. The move is expected to hurt more than 32,000 farmers. Meantime, heavy rain brought on by La Nina has started to disrupt production in Southeast Asian palm oil-producing countries. But going forward, Indonesia production, accounting for more than half the world’s palm oil, could rise by 4% to a record high in 2021 after La Nina rains drench plantations and boost yields.
Historically, Palm Oil reached an all time high of 4298 in March of 2008. Palm Oil - data, forecasts, historical chart - was last updated on October of 2020.
Palm Oil is expected to trade at 2429.73 MYR/MT by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2087.23 in 12 months time.