The price of crude palm oil (CPO) jumped to the highest level in the history of the country's palm oil industry to RM4,247.50 per tonne yesterday compared to last Thursday's level of RM4,193 per tonne.
According to Bernama, the price level is the highest recorded in the last 13 years.
Minister of Plantation Industries and Commodities, Datuk Dr Mohd Khairuddin Aman Razali said, as a result, the price of Fresh Fruit Bunches (FFB) in Peninsular Malaysia surpassed
the level of RM900 per ton while the price a year ago was only around RM300.
Meanwhile, according to the Malaysian Palm Oil Board (MPOB), CPO prices have the potential to remain high based on the current positive market sentiment, namely low stock levels, increased palm oil exports and strengthening soybean oil prices in the world market.
MPOB data also showed that the commodity recorded an average price of RM3,895.50 per tonne over the past month.
The same data showed that the highest CPO price recorded last year was RM3,788 per tonne.
Yesterday, Bloomberg reported that palm oil prices are expected to record their best annual performance in a decade even though the Covid-19 pandemic has not recorded any decline worldwide.
The benchmark tropical oil futures, which are used in all things and products from cooking oil to shampoo, will hover at an average level of around RM3,200 a tonne this year, the highest in a decade.
In a similar development, Singapore -based Palm Oil Analytics owner Sathia Varqa said the floods following La Nina and declining inventories in the country boosted the market, but prices may be under pressure in the second half due to rising palm and soybean oil production. again.
"Given lower production and the lowest stocks in a few years, CPO prices are expected to continue to rise until mid -February, but then subside as production begins to recover and stocks increase from March onwards," he said.
