ROTTERDAM (Sept 11): Crude palm oil (CPO) prices are anticipated to hover around RM4,000 per tonne by year end, according to the Malaysian Palm Oil Board (MPOB).

MPOB director general Datuk Ahmad Parveez Ghulam Kadir stated that CPO prices ranged between RM3,800 and RM4,200 per tonne last year.

The benchmark CPO futures for November 2024 stood at RM3,885 per tonne on Tuesday (Sept 10).

“We have observed a rise in stock levels this year, but we are hopeful that by year end, our stocks will stay below two million tonnes,” he told Bernama on the sidelines of the third Sustainable Vegetable Oils Conference organised by the Council of Palm Oil Producing Countries (CPOPC).

According to the board, Malaysia’s CPO production increased by 2.9% to 1.89 million tonnes in August 2024 from 1.84 million tonnes in the preceding month, while CPO stocks rose by 2.5% to 953,145 tonnes against 930,099 tonnes in July.

It added that palm oil exports fell 9.7% to 1.53 million tonnes from 1.69 million tonnes in July.

Earlier, Ahmad Parveez delivered a presentation in which he emphasised that MPOB is actively working to meet the criteria and traceability requirements of the European Union Deforestation-free Regulation (EUDR).

He explained that MPOB is conducting canopy mapping to document the areas where oil palm is cultivated.

“We need to be prepared, which is why we are undertaking this effort. Using satellite imagery, we can identify all oil palm plantations.

“We can distinguish between oil palm, coconut, or other crops based on the planting methods. Additionally, by analysing the spacing, we can estimate the age of the trees,” he said. 

https://www.theedgemarkets.com/node/726347