Mistry: Malaysian palm oil will trade at around 4,000 Ringgit/T by 2025

Analyst Dorab Mistry predicted that Malaysian palm oils will trade at around 4,000 Malaysian Ringgit per metric tonne in 2025. However, there was a short rise to 4,800 Ringgit in February due to stiff competition from soybean oil.

By midday, the benchmark palm oil contract, FCPOc3, for April delivery, on Bursa Malaysia's Derivatives exchange had lost 64 ringgit or 1.52% to 4,144 Ringgit ($933.02), a metric tonne.

Mistry had earlier predicted that Malaysian palm oil would trade at or above 5,000 ringgit by June 2025.

In a presentation on Thursday at an industry conference, Mistry, director of Indian consumer products company Godrej International said that palm oil prices may briefly rise in February, ahead of the Muslim month of Ramadan.

Palm oil consumption is likely to increase during Ramadan. It will begin in early March when Muslims break their fast at communal meals. Eid al-Fitr, the Islamic holiday, ends Ramadan.

From April, the production of palm oil will increase, while at the same, South American soyoil new season would be available at competitive rates. Mistry stated that this would lead to a downward pressure on the price of palm oil.

He said that the global palm oil production in 2025 could increase by 2,5 million metric tonnes, mostly due to an Indonesian output increase of 2 million tons.

The analyst said that the biofuel policy of the United States and Indonesia, a major palm oil producer, will have a significant impact on vegetable oil markets by 2025.

Donald Trump announced a comprehensive plan on Monday to increase oil and gas production. He also rolled back environmental protections and withdrawn the U.S. (Reporting and editing by Kate Mayberry; Rajendra Jadhav)

(source: Reuters)