Analysts Cut Forecast for Malaysia's Crude Palm Oil Prices
Analysts Lower Forecast for Malaysia's Crude Palm Oil Prices
(Agricultural Wealth Network) According to industry analysts on November 10, because Malaysia's palm oil production in October hit a record high of 1.99 million tons, they accordingly lowered their crude palm oil price forecast.
The analyst said Malaysia's palm oil production in October increased by 27% to reach 1.99 million tons, setting a record high monthly production level, which indicates that palm oil stocks may rise to 2.1 million tons by the end of the year.
Ample crude palm oil supply may cause the premium of crude palm oil relative to Brent crude oil prices to decline over the next two to three months.
According to the Malaysian Palm Oil Board on November 10, palm oil stocks at the end of October increased by 25% compared with the previous month, reaching 1.98 million tons, the highest level in ten months.
The analyst lowered the crude palm oil price forecast by 250 ringgit. If Brent crude oil prices stabilize at 75 USD/barrel, then by April next year crude palm oil prices may rise to 2,375 ringgit.
The analyst said Malaysia's palm oil production in October increased by 27% to reach 1.99 million tons, setting a record high monthly production level, which indicates that palm oil stocks may rise to 2.1 million tons by the end of the year.
Ample crude palm oil supply may cause the premium of crude palm oil relative to Brent crude oil prices to decline over the next two to three months.
According to the Malaysian Palm Oil Board on November 10, palm oil stocks at the end of October increased by 25% compared with the previous month, reaching 1.98 million tons, the highest level in ten months.
The analyst lowered the crude palm oil price forecast by 250 ringgit. If Brent crude oil prices stabilize at 75 USD/barrel, then by April next year crude palm oil prices may rise to 2,375 ringgit.