Palm oil costs set for brand new report highs in coming months -analyst Fry


An individual holds bottles of cooking oil created from oil palms at a grocery store in Subang Jaya, Malaysia, March 8, 2022. REUTERS/Hasnoor Hussain

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KUALA LUMPUR, March 9 (Reuters) – Palm oil costs might hit a report 8,100 ringgit ($1,938) a tonne in coming months following a plunge in international edible oil shares and a decline in export surpluses, together with the influence of battle in Ukraine, analyst James Fry mentioned on Wednesday.

He anticipated regionally delivered crude palm oil costs in Malaysia to vary between 6,600-8,100 ringgit a tonne till July, easing to six,200-7,000 ringgit within the third and fourth quarters when provide builds up and demand reduces.

“The cabinet is naked; due to this fact there is no such thing as a different to letting excessive costs do the job of rationing demand to steadiness the market,” Fry, chairman of agribusiness consultancy LMC Worldwide, instructed an trade convention in Kuala Lumpur.

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The benchmark palm oil contract for Might supply on the Bursa Malaysia Derivatives Change was buying and selling round 6,622 ringgit ($1,583) a tonne on Wednesday.

All main edible and mineral oil costs have soared to multi-year or all-time highs in 2022 on provide worries, brisk international demand

Costs have risen 38% up to now this 12 months.

Fry mentioned as a lot as 60% of Black Sea sunflower oil exports, or 8 million tonnes, can be delayed following Russia’s invastion of Ukraine.

“A month in the past we anticipated Black Sea solar oil exports to develop nicely over 2 million tonnes to 13.5 million in 2021/22. Now the query is how a lot might be misplaced as a result of invasion,” he mentioned.

($1 = 4.1800 ringgit)

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Reporting by Mei Mei Chu; Enhancing by Richard Pullin

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