Will CPO prices remain above RM4,500 per tonne?

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Crude Palm Oil Prices Expected to Remain Above RM4,500 Per Tonne

Crude Palm Oil (CPO) prices are anticipated to hold steady above RM4,500 per tonne, according to the Plantation Industries and Commodities Minister, Datuk Zuraida Kamaruddin. This expectation follows a recent downward trend, with prices falling from RM6,753.50 a tonne on June 7, 2022, to RM5,046.00 a tonne by June 22, 2022. The minister indicated that the current price range of RM4,500 to RM5,000 per tonne represents a new stable norm for the commodity.
Factors Influencing Price Stability

The minister attributed the earlier-than-expected decline in CPO prices to significant global events. Indonesia's earlier ban on palm oil exports and the ongoing Russia-Ukraine conflict were key factors that disrupted supply chains and influenced market dynamics. These events led to a more rapid price adjustment than initially forecast for the end of the year.
Projected Price Range

Datuk Zuraida Kamaruddin stated that the "new norm" for CPO prices is expected to be within the RM4,500 to RM5,000 per tonne range. Despite the recent fall from previous highs, she emphasized that palm oil producers are still experiencing favourable conditions and generating substantial income at these projected price levels.
Recent Price Performance

The commodity has experienced a noticeable dip in value in the weeks leading up to the statement. Specifically, CPO prices saw a decrease of 25.3 per cent, moving from RM6,753.50 a tonne on June 7, 2022, down to RM5,046.00 a tonne by June 22, 2022. This recent performance underscores the volatility in the market, even as a stable floor is projected.

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Will CPO prices remain above RM4,500 per tonne?

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