JAKARTA – The price of crude palm oil (CPO) for June 2021 delivery at Malaysia Derivative Exchange dropped significantly during trading on Monday, 29 March 2021.
The CPO price dropped 1.9% compared to the closing price at the end of trading last week. The price of the Indonesia’s and Malaysia’s top vegetable oil slipped to RM 3,621 per ton, which was the lowest level during the last one month.
But despite the decline, the palm oil price is predicted to have the potential to surge again.
The Indonesian Palm Oil Association (Gapki) Deputy Chairman Togar Sitanggang said that he is still optimistic on the price, predicting that the CPO price will be traded at between RM 4,100 – RM 4,715 per ton during the first semester this year.
Conversely, Godrej International Ltd Director Dorab Mistry expressed his bearish view, predicting that the CPO price will drastically drop to RM 2,700 per ton since July.
Editor and the CEO of Oil World, Thomas Mielke predicted that the CPO price will start declining during the second quarter this year. But he said that the decline will be moderate as long as the stock is kept low.
According to a number of analysts, the prices of global vegetable oils are almost reaching their peak, but perhaps slow to decrease to the previous level due to low stock, slow recovery of production, and higher global demand for biofuel production.
Possibly, the prices of main vegetable oils, such as palm oil and soybean, had reached their peak during the last few years. “In 2021, my estimation of production has been cut from 20 million tons to 19.6 million tons in Malaysia and from 49 million tons to 48 million tons in Indonesia,” Dorab Mistry, director of Indian consumers goods producer Godrej International, was quoted by Reuters as saying recently.
“The global palm oil supply is predicted to increase by 3.0 million tons in 2021 after seeing a decline of 2.5 million tons last year,” added Mistry. (*)
Source: cnbcindonesia.com | Featured image via merdeka.com