Palm oil production in Indonesia may decline next year

Palm oil production in Indonesia may decrease by at least 1 million tons in 2024, while production volumes in Malaysia will remain unchanged. This estimate was made public by industry analyst Dorab Mistri.

He also predicts the range of palm oil futures on the stock exchange in Malaysia to be 3700-4500 ringgit/t in the period from November this year to June 2024.

It should be noted that as a result of trading on November 2 on the Kuala Lumpur Stock Exchange, palm oil quotations increased significantly to 3784 ringgit/t compared to 3688 ringgit/t in the previous trading.

At the same time, according to the expert, most of the “bearish” factors in the palm oil segment have already ended. From now on, the key factors for palm oil pricing will be the severity of the drought caused by El Niño and the volume of oil and biofuel production.

Thus, hot and dry weather due to the El Niño phenomenon usually reduces the yield of palm oil in the main producing countries – Indonesia and Malaysia.

D. Mistri also expects Indonesia to introduce a mandatory B35 biodiesel mandate that will be in effect throughout 2024.

Tags: Indonesia, palm oil, crop forecast