PALMOILMAGAZINE, KUALA LUMPUR – Dorab Mistry, a seasoned dealer in the vegetable oil industry, highlighted stagnant production and low stock levels as the primary drivers behind an expected increase in palm oil prices in the near term. He forecasted a decline of approximately one million tons in palm oil production in Indonesia, one of the world’s largest producers, for 2024, while Malaysian production is expected to remain steady.
Speaking at the Palm Oil Price Outlook and Lauric Conference in Kuala Lumpur, Mistry emphasized that this trend could persist for the next five years due to factors such as aging trees, weather conditions, and limited improvements in agricultural practices posing challenges for the industry.
While production of other vegetable oils may be on the rise this year, palm oil is expected to lag behind, resulting in a supply shortfall. This discrepancy is notable as palm oil is typically priced lower than alternative oils.
Also Read: Dorab Mistry : The Competition Among Vegetable Oils Could Minimize Palm Oil Demands
As quoted from Reuters, Mistry also explained that tropical oil is sold more expensive than soyoil and sunflower oil in some countries. This is unusual phenomenon and could be happening until October, when palm oil production would hit seasonal peak.
Palm oil prices at stock markets escalated about 6% this year, at RM 3.942 per ton on Tuesday in Kuala Lumpur.
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He also told the unpredictable weather would be the main factor for plantations. Though the condition is still good now, it would support new harvest and press seeds and vegetable oils to the lowest level from the last three years. This would not last for long. (T2)
