Palm oil prices are expected to trade between 3,800-4,000 ringgit in April as the market weighs a recovery in production and inventories in coming months, according to the Malaysian Palm Oil Council.
-A bullish price movement from current levels is unlikely due to the ample supply of soybeans from South America entering the global market in April, coupled with the gradual seasonal recovery of palm yields in Malaysia, MPOC said in a statement.
The low season for palm output ended in March; strong prices in 1Q were mainly due to supply deficits.
-Palm oil’s price premium over rivals soybean, rapeseed and sunflower oils has widened to around $40-$95 in March; a recovery in soft oil prices is anticipated in April to narrow this price spread.
-Global palm oil output is forecast to rise minimally by 0.1% in 2024, while output in soybean, rapeseed and sunflower oils is projected to increase by 2.9%, 3.5%, and 3.9%, respectively.