InfoSAWIT, KUALA LUMPUR – (Crude) palm oil that was the main option for importer (consumer) countries now significantly faces pressure higher than its main competitor, sunflower oil. According to RHB Investment Bank (RHB Investment), this could make product option shift to other kinds of oil.

Analysis of RHB Investment revealed, though importer countries escalated their CPO stock to qualify the increasing demands, its competitive mainstay would still be threatened by sunflower oil with price gap at US$ 3/ton, and CPO which got price discount which is smaller than soyoil.

As quoted from Astroawani, RHB Investment also predicted, palm oil stocks would be lower in number, less than 2 million tons for the next couple of months though CPO hit its peak at RM 4.285 in March 2024. MIDF Research predicted, MSM could be ess than RM 4.000 per ton for the next month, it depends on the weather.

But MSM on the spot price could be increasing 4,6% to be RM 4.410 per ton in April, influenced by EL-Niño. But the weather recovery which was anticipated heading to La Nina in the second semester 2024, CPO could be cheaper in May, at about RM 3.946,7 per ton (decreased 10,5%).

The changing trend of CPO and sunflower oil price reflects the market dynamics with the weather factors, such as, EL Nino, La Nina, and trade policy in many countries. These play the significant roles to determine the market direction. To face the challenge, product diversification and adaptation would be the keys for palm oil producer countries to keep maintaining their competitiveness in the markets globally. (T2)