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SD Guthrie expects crude palm oil prices to average above RM4,000 per tonne this year, citing limited Indonesian supply due to extreme weather tied to El Nino. The company said palm is now cheaper than soybean and sunflower oil, and expects La Nina in the second half of the year.
Weather-driven Indonesian supply constraints and palm's price discount to other oils support palm prices and vegetable oil demand in feed markets.
malaymail.comMay 31, 2024After 181 past bullish weather events, PALMOIL moved a median +0.5% over 5 sessions (56% higher; middle half -0.9% to +1.9%), and +0.3% over 20.
After 18 past neutral weather events, SBO moved a median +2.6% over 5 sessions (72% higher; middle half -0.4% to +3.5%), and +3.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
SD Guthrie's outlook of CPO averaging above RM4,000 on limited Indonesian El Nino supply and palm's discount to other oils supported bullish sentiment.
