The price of VEGOILS - Palm ends lower following the views and forecasts at the Price Outlook Conference

After the Price Outlook Conference (POC), held in Kuala Lumpur, several forecasts and views were presented.

The benchmark palm oil contract for April delivery at Bursa Derivatives Exchange dropped 35 ringgit (0.85%) to 4,060 Ringgit ($1,037.83).

Dalian's palm oil contract dropped 0.69%, while the most active soyoil contract declined 0.05%. Chicago Board of Trade soyoil prices fell?0.54%.

As it competes to gain a share of the global vegetable oil market, palm oil follows the price movement of other edible oils. Dorab Mistry, an industry analyst, said that Malaysian palm futures will trade in a 'range-bound' between 3,800-4,300 ringgit per metric ton until July 2026. This is assuming no new weather-related factors. The Indonesian palm producers association GAPKI stated that the crude palm oil production in Indonesia is expected to increase by 2-3% next year after increasing 8% last year to reach 51.98 millions metric tons. Analyst Thomas Mielke stated at the POC that palm oil purchases by top buyers India, and China, are expected to increase from January through April of this year. Stocks will 'decrease over the period. Julian McGill, the managing director of Glenauk Economics said that palm oil production is expected to increase at a "slower" pace in 2026. Production will rise by 600,000 tonnes in Indonesia and fall to 19.7 million tons in Malaysia. Malaysian palm oil stocks fell 7.72% in January, for the first time since '11 months. This was due to an increase in exports, despite production falling to a 10-month-low.

AmSpec Agri reports that exports of Malaysian palm oil products fell by 14.3% between January 1 and 10, while Intertek Testing Services, a cargo surveyor, reported a decline of 10.5%.

(source: Reuters)