Mistry: Malaysia palm oil futures will be around or above 5,000 Ringgit by mid-2025.

Dorab Mistry, a leading industry analyst, said that until June 2025, Malaysian palm oil benchmark futures will likely trade at or above 5,000 ringgit per metric ton, due to tight supply and strong demand.

Mistry, speaking at the Indonesia Palm Oil Conference held in Bali, said that the global vegetable oil demand is expected to increase by 6.5 millions tons in 2024-2025 (Nov-Oct). Meanwhile, the supply is projected to rise by 3,000,000 tons.

He said that the palm oil supply is projected to rise by 2.5 million tonnes in 2024-2025, and the soya supply is predicted to grow by 3.5 millions tons. Meanwhile, he stated that rapeseed and other oils are expected to decrease. Mistry said that Indonesia's plan for increasing the mandated percentages of palm oil and biodiesel in biodiesel are among the most important factors to watch next season. He argues the market is too bullish about the plan, making palm oil prices uncompetitive.

He said that the demand surges around Lunar New Year, Ramadan and other holidays will also support prices during the first quarter 2025.

(source: Reuters)