InfoSAWIT, KUALA LUMPUR - TA Research in its report mentioned that palm oil stock data in Malaysian Palm Oil Board (MPOB) in August 2024 would be a neutral prospect.

Without the main catalyst that could increase the demands, palm oil trade would still have something to do with Federal Reserve interest rate policy and the impact to crude oil (price).

As InfoSAWIT quoted from The Star, Thursday (19/9/2024), the institution maintained that CPO could be at RM 4.000 per ton in 2024 and about RM 3.800 per ton in 2025. But they would be ready to review the assumption if soyoil supply in many countries would be lower in numbers from the expectation or if there could be increasing demands significantly.

CGS International (CGSI) Research reported that palm oil production in Malaysia could be at the peak in September - October 2024. But there is potential to slow down in the fourth quarter.

Besides, the Government of Indonesia is still considering the decreasing export tariff for its palm oil products that may make CPO cheaper in the short term. CGSI also stated that the decreasing export duties would increase the margins for the downstream sectors, namely in palm oil sector in Indonesia. (T2)