KUALA LUMPUR: Malaysian palm oil price is seen trading in the range of 3,800 to 4,300 ringgit in the next three months as supplies tighten, leading industry analyst Thomas Mielke said on Wednesday.
Malaysia’s palm oil benchmark contract was trading at 4,042 ringgit ($854.73) at 0409 GMT, up 1.4% from a day earlier.
“Palm oil prices have made their lows. It will appreciate and stay well above average in 2024 and 2025 mainly due to insufficient palm oil supplies,” Mielke, executive director of Hamburg-based forecaster Oil World, told an industry conference.
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Annual growth of palm oil production in 2023/24 is expected to be the smallest in four years at around 0.2 million metric tons to 0.3 million tons, Mielke said, as the output from the two biggest producers Indonesia and Malaysia are seen stagnating this year.
Output from Central America and Africa is seen moderately higher.
The current premium of palm oil over sunflower oil and soy oil prices however is expected to disappear in next several weeks, Mielke said, as their prices are also seen rising.
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