Saturday 07 Dec 2024
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NUSA DUA, Indonesia (Nov 8): Malaysian benchmark palm oil futures are expected to trade above and around RM5,000 per tonne until June 2025, supported by tight supply and bullish demand, leading industry analyst Dorab Mistry said on Friday.

Global vegetable oil demand in the 2024-2025 season (Nov-Oct) is expected to grow by 6.5 million tonnes, while supply is seen increasing by three million tonnes, Mistry told the Indonesia Palm Oil Conference in Bali.

Palm oil supply in 2024-2025 is expected to increase by 2.5 million tonnes and soya oil supply was seen rising by 3.5 million tonnes, while he said the supply of rapeseed oil and others is expected to drop.

Indonesia's plan to increase the mandated percentage of palm oil in biodiesel is among the top factors to watch in the next season, said Mistry, who has argued the market has been too bullish on the plan and made palm oil prices uncompetitive.

Boosts to demand around Lunar New Year and Ramadan are also expected to support prices in the first quarter of 2025, he said.

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