Malaysia's crude palm oil (CPO) prices have shown a significant uptrend at above the RM3,000 per tonne level, the highest level in 2020, driven by high global demand from major buyers including India and China.
In a statement today, the Malaysian Palm Oil Board (MPOB) said the average CPO price jumped to RM3,134 per tonne yesterday (Oct 26), compared with its lowest level this year at RM2,021.50 per tonne on May 12, recording an increase of RM1,112.50 per tonne or 55%.
MPOB chairman Datuk Ahmad Jazlan Yaakub said CPO demand from India was expected to continue to increase as the country beefs up its supply of vegetable oil stocks in the domestic market in preparation for Deepavali next month.
"Demand from China is also expected to continue to increase ahead of the Mid-Autumn Festival and the Golden Week starting October," he said.
In addition, he said the strengthening of soybean oil prices on the Chicago Board of Trade and China’s Dalian Commodity Exchange supported the increase in CPO prices.
"The increase is also influenced by the movement of soybean oil prices as they both compete in the global vegetable oil market.
"This price increase not only contributes to the Gross Domestic Product, but also benefits oil palm growers and industry players in Malaysia, where we all understand the people are grappling with financial difficulties as a result of the Covid-19 pandemic," he said.
Ahmad Jazlan said he hoped the palm oil price will continue to remain at above RM3,000 per tonne for the continuity of the country’s oil palm sector.