‘Technically, the price is making a correction, probably the best time to get in line.’
Crude palm oil (CPO) prices retreated briefly from record highs despite expectations of stock reductions at Malaysia's 2nd largest plantation and resuming concerns in the Black Sea region.
On Tuesday (March 2), CPO registered a 7.1% gain to a high of RM7,108 before declining 5.8% to RM6,415 and falling further to RM6,412 during today's trading session (March 4).
The director of Pelindung Bestari, Paramalingam Supramaniam, said prices were trying to find lower levels but the palm oil base remained attractive with declining stockpiles and tight edible oil availability around the world indirectly increasing buying interest.
According to sources, inventories in Malaysia fell to a 14-month low at the end of February as production declined for 4 consecutive months due to chronic labor shortages.
Meanwhile, the price of cooking oil, whose versatility soared when the Russo-Ukrainian war led to a reduction in the oil market, further increased the risk of food inflation.
