# Fitch: Higher global vegetable oil supply to drag CPO prices lower in Q2 | Malay Mail

> Fitch Ratings expects Malaysia's benchmark crude palm oil prices to weaken from the second quarter of 2024 because of higher global vegetable oil supply. Its benchmark assumption is $700 per tonne for 2024 and 2025. Fitch flagged El Niño or La Niña and Indonesian biodiesel blending as upside risks.

- Date: 2024-03-27 · published 2024-03-27T12:00:00.000Z
- Category: report · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/31287-fitch-higher-global-vegetable-oil-supply-to-drag-cpo-prices-lower-in-q2-malay
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Expected Q2 supply growth and mild weather point to softer palm prices, though a stronger biodiesel mandate could reverse that. Feed costs tied to vegetable oils may ease later in the year.

## Read by commodity

- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2021-03-25 | [Vegetable oil prices set to fall](https://feedsoft.ai/events/12665-vegetable-oil-prices-set-to-fall.md) | -1.3% | -1.8% |
| PALMOIL | 2018-04-14 | [Global Palm Oil Prices To Plummet Due To Over-Supply - Brand Spur](https://feedsoft.ai/events/65608-global-palm-oil-prices-to-plummet-due-to-over-supply-brand-spur.md) | +0.0% | -3.7% |
| PALMOIL | 2020-06-16 | [FAO vegetable oil price index falls to eight-month low - Renewable Carbon News](https://feedsoft.ai/events/52705-fao-vegetable-oil-price-index-falls-to-eight-month-low-renewable-carbon-news.md) | +3.0% | +5.3% |
| PALMOIL | 2025-01-02 | [Fitch Expects CPO Prices to Weaken in 2025 Amid Improved Yield, Higher Soybean Output - MPOC](https://feedsoft.ai/events/5049-fitch-expects-cpo-prices-to-weaken-in-2025-amid-improved-yield-higher-soybean.md) | -10.6% | -10.3% |
| PALMOIL | 2022-06-10 | [Malaysia's palm oil stocks above expectations on higher-than-projected output in May \| S&P Global](https://feedsoft.ai/events/15815-malaysia-s-palm-oil-stocks-above-expectations-on-higher-than-projected-output.md) | -6.3% | -32.4% |

## Sources

- malaymail.com: https://www.malaymail.com/news/money/2024/03/27/fitch-higher-global-vegetable-oil-supply-to-drag-cpo-prices-lower-in-q2/125843

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.