Analyst Mistry predicts that Malaysian palm oil will trade between 3,700-4 500 rgt/T by mid-2025.
Dorab Mistry, an industry analyst, said that Malaysian palm oils are likely to trade in the range of 3,700-4,500 ringgit per metric ton between now and June. This is because demand will be high during the Chinese Lunar New Year as well as the holy Ramadan month.
As of Friday morning, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange gained 42 ringgit or 1.08% to $3,918 ringgit (US$937.74) per metric ton.
Prices will start a new bull-market in January-March 25, according to a report. "The combination of Chinese New Year with Ramadan during the quarter of January-March is bullish," Mistry, director of Indian consumer products company Godrej International said in a Friday presentation at Globoil, an industry conference in Mumbai.
Palm oil consumption usually increases during Chinese New Year celebrations. The consumption of edible oil also tends to increase during Ramadan (due in late February or March next year), when Muslims will gather at communal feasts for the breaking of their fast.
Mistry stated that the demand for vegetable oil in the food and energy sector is expected to increase by 6 million metric tonnes in 2024-25, mainly because of the rising consumption in Brazil. India, Indonesia, and the United States.
He said factors like crude oil prices, weather conditions and overall climate conditions in South America (a major producer of soybeans) would have an impact on palm oil price.
Mistry stated that any move by India to lower tariffs this year or the following year would be key in determining palm-oil prices.
India raised its basic import tax for crude and refined edible oil by 20 percentage points last week to protect farmers from falling prices of oilseeds.
Sanjeev Athana, CEO of Patanjali Foods Ltd, a major importer, said on Wednesday that despite the increase in import duties, India’s edible oil consumption will grow by 2% to 3 % as cooking oils are still affordable.
Mistry stated that the U.S. biodiesel market would continue to be a strong one. $1 = 4.1780 Ringgit (Reporting and editing by Jamie Freed; Reporting by Rajendra Jhadhav)
(source: Reuters)
