Malaysian palm oil futures broke above RM4,500 per tonne for the first time on record, tracking gains in other vegetable oil prices, on the back of tight global edible oil supplies and shortage of migrant workers on Malaysia’s plantations despite falling demand from India amid a deepening coronavirus crisis. Harvesting has been affected by labor shortage as oil palm estates dependent on foreign workers struggle with a shortage of manpower under a prolonged freeze on hiring by the government due to Covid-19. Stockpiles of palm oil in the world’s second-biggest grower increased 7.1% in April but reserves are still 24% smaller than a year earlier. Meantime, production increased 7%, much slower growth than the almost 30% jump in March; and exports rose 3% to a four-month high. In the broader scenario, palm oil futures also benefited by strength in other agricultural commodities such as corn and soybeans, which have been hovering at multi-year highs.
Historically, Palm Oil reached an all time high of 4513 in May of 2021. Palm Oil - data, forecasts, historical chart - was last updated on May of 2021.
Palm Oil is expected to trade at 4300.51 MYR/MT by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3694.30 in 12 months time.