Analyst Predicts Sloping CPO Prices Next Year

Analyst Predicts Sloping CPO

Analyst Predicts Sloping CPO : Oil World analyst Thomas Mielke estimates that crude palm oil (CPO) prices will not fall too deep in 2023. This is because palm oil production will increase next year. In addition, the price of CPO will be influenced by geopolitical, climate and energy issues.

Analyst Predicts Sloping CPO Prices Next Year

“World palm oil prices are unlikely to fall back to their recent lows. On September 28, Malaysia’s RBD Palm Olein price reached FOB US$810 per tonne. Even though it recovered on November 2, it was US$975 per tonne.” He said. Mielke speaking at the 18th Indonesian Palm Oil Conference (IPOC) and 2023 Price Outlook at the Bali International Convention Center (BICC). Nusa Dua. Bali.

Mielke projects that the increase in CPO production will occur in Indonesia and Malaysia in the period October 2022 to September 2023. In this case, Indonesian CPO production is estimated to increase by 2.2 million tons and Malaysia by 300 thousand tons. Nevertheless. He continued. The increase in world palm oil production which grew significantly over the last 40 years from 1980 to 2022 fac productivity challenges.

Total world palm oil production will reach 78.3 million tons by 2022. Which contributes 32 percent to oil and fats production. Palm oil growth has lost its dynamics due to a number of influencing factors. Namely decreased productivity. Low opening of new plantations, labor shortages, and plant pest problems,” said Mielke.

Previously, the average increase in palm oil production in the last 10 years reached 2.9 million tons/year until 2020.

“However, the average palm oil production will decline to 2.3 million tons in the next 10 years until 2030,” added Mielke. From the demand aspect, the biodiesel program greatly affects the world’s palm oil needs. Mielke explained that biodiesel production has doubled in the last 10 years. Currently, the price of CPO is rising due to the competitiveness of palm oil in Indonesia and the impact of the biodiesel blending program.

Previously, the average increase in palm oil production in the last 10 years reached 2.9 million tons/year until 2020.

“However, the average palm oil production will decline to 2.3 million tons in the next 10 years until 2030,” added Mielke. From the demand aspect, the biodiesel program greatly affects the world’s palm oil needs. Mielke explained that biodiesel production has doubled in the last 10 years. Currently, the price of CPO is rising due to the competitiveness of palm oil in Indonesia and the impact of the biodiesel blending program.