Key Factors To Watch Palm Oil Market in 2022

Factors That Effect Market Are As Under:

1.Production

2.Weather

3. Worker’s shortage problem – SUPPLY

4. Fertilizer cost – SUPPLY

5. Palm discount to bean oil – DEMAND

6. Trade policies – Indonesia and India – DEMAND

7. Biodiesel – DEMAND

8. Sustainability and de-carbon agenda – DEMAND

Price Outlook For Feb – March 2022:

• CPO futures active month to trend RM4800–5100 up to February 2022

• To trade lower from March 2022 to RM4700-4500

• Lower again from May 2022 heading to RM 4200-3800

• RBD palm olein FOB Malaysia offers at US$990-1100/ton in March 2022 from current US$1325/ton

• Palm olein discount to bean to move above US$100 from March 2022

Thanks By Dr.Sathia

PalmOilAnalyst