Palm Oil Prices Surge Up To 3900 Ringgit , Low Production & Decreased Supplies

palm oil price

KAULA LUMPUR : Prices for Malaysian palm oil increased to over MYR 3,900 per tonne as a result of decreased supplies.

As production fell and analysts anticipate it to fall even further toward 1.9 million tonnes by the end of the first quarter, domestic inventories are likely to have decreased by almost 0.7% from a month earlier to a 5-month low of 2.18 million tonnes in late January.

In addition, Indonesia announced that it would review the percentage of its palm oil export quota in light of the increasing costs of domestic cooking oil.

As exporters had accumulated sizable quotas for shipments from late last year, senior cabinet minister Luhut Pandjaitan announced that Indonesia would suspend some of the country’s current palm oil export permits until the end of April.

Nevertheless, the benchmark is still relatively close to levels last seen in October 2022.