Crude Palm Oil production worldwide fell in 2016, resulting in the Bursa Malaysia’s CPO Futures market to breach the RM3,000 per MT level for the first time in so many years.
Stockpile in Malaysia has fallen to 1.62 million MT in November 2016; according to the median of eight estimates from planters, traders and analysts surveyed by Bloomberg.
At an industry conference in Goa held in September 2016, renowned vegetable oil analyst Mr Thomas Mielke warned that global palm oil supplies won’t meet export demand in in 2016/17. The Reuters report, passed on to CNBC from Oilword, Mielke’s team said palm oil production has been negatively affected by the severe drought caused by El Nino in 2015.
However, at the same conference, Chairman of Commodities Consultancy LMC International, Dr James Fry, forecast that global palm oil output will rise by 4 million tons in the first half of next year.
The Malaysian Ringgit has also fallen to RM4.47 to the US Dollar, its lowest level since 1998. A weak Ringgit tends to provide support to Malaysian CPO prices.
What’s in store for CPO prices in 2017?
- Will the market remain bullish?
- Can we expect a pull-back in prices in the short term?
- Will CPO prices continue to soar?
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