Kuala Lumpur July 14 2022: Crude palm oil prices, which hit a record high of Malaysian ringgit 7,268 a tonne on March 9, have halved in four months on the back of changing oil market dynamics.
Indonesia, the major producer and exporter, lifted its export ban within three weeks of imposing it in April this year, easing supply concerns from the country.
Moreover, sunflower oil supplies from Ukraine were not hit as expected, even as the Ukraine-Russia war continued.
CPO prices on the Bursa Malaysia Exchange are currently trading at 3823 ringgit a tonne, a 7 per cent loss from the previous day, and are at their lowest level in 11 months, said Origo e-Mandi Research.
Recessionary fears and a continued rout in commodities have also dented the appeal of oils, especially palm and soyabean oil.
Rising production and ending stocks, coupled with lower tariffs, have also dragged prices down.
Malaysia’s palm oil production hit a seven-month high of 1.55 million tonnes in June, against 1.45 mt in May, an increase of 6.20 per cent.
Malaysian palm oil inventory surged to a seven-month high of 1.66 mt in June, up 9.2 per cent from the May level of 1.52 mt.