Malaysian palm oil futures were at MYR 3,360 per tonne, recovering slightly from the two-and-a-half-year low of MYR 3,200 touched on May 31st as the key biodiesel feedstock tracked the slight recovery for crude oil prices. Still, strong supply levels among key producers and evidence of muted demand continued to pressure palm oil benchmarks. Cargo surveyors indicate that Malaysian exports contracted between 0.8% and 1.8% in May. On the supply side, domestic production is expected to have jumped between 20%-30% in April, rebounding sharply from the recent lows during the Raya holidays. Elsewhere, soaring output levels in top producer Indonesia are anticipated to oversupply a weaker domestic market. Also supporting output, the latest forecasts expect that the incoming El Nino phenomenon is unlikely to impact palm oil production through multiple Southeast Asian hubs this year, although threats for the next year linger.
Historically, Palm Oil reached an all time high of 7268.00 in March of 2022. Palm Oil - data, forecasts, historical chart - was last updated on June of 2023.
Palm Oil is expected to trade at 3277.41 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 2912.31 in 12 months time.