BMI revises crude palm oil price upward to RM3,515 per tonne for 2024
KUALA LUMPUR, Nov 23 — BMI, a Fitch Solutions company, has revised upward its projection for the price of crude palm oil in 2024 to RM3,515 per tonne from RM3,400 per tonne.
However, this is a 7.5 per cent decline from its forecast for 2023.
“It remains our view that the global palm oil sector will generate production surpluses of 1.2 million tonnes in both 2022/23 and 2023/24, respectively, compared to an average surplus of the five most recently completed seasons of three million tonnes, which, in conjunction with support from the Brent market, will insert a floor under prices,” the research firm said in a report.
“In the near term, up to the end of 2023 and into the start of 2024, the palm oil market will face some headwinds insofar as India’s import demand tends to soften during its domestic winter, a seasonal quirk that could be amplified in view of the recent accumulation of edible oil stocks in India......