CPO prices to range higher at RM5,000-RM5,500 a tonne in Q4 - Zuraida

This is due to the resumption of Indonesia's palm oil export levy beginning September 1, and the expected decline in palm oil production in Q4, she said.

According to Zuraida, the CPO price rose by 55.9 per cent to RM6,330.00 per tonne during the January-June 2022 period from RM4,061.50 per tonne in the same period last year.

"The higher CPO price during that period was influenced by higher prices of soybean oil (SBO); palm oil stocks remained at manageable levels; firmer Brent crude oil price; and concerns over disruptions of vegetable oil supply from the Black Sea region following Russia's invasion of Ukraine," she said in a statement today.

Zuraida also noted that the recent move by Jakarta to scrap its export levy for all palm oil products until August 31 in a fresh attempt to boost exports and ease high inventories would imply that CPO prices are likely to remain weak for most of the third quarter (Q3) 2022.

"This is inevitable in light of stiffer competition from Indonesia - the world's largest palm oil producer - in its quest to flush out as much excess palm oil as possible from its existing stockpile.

"The average CPO price for Q3 2022 is projected to range between RM4,800 and RM5,200 per tonne. For the record, the daily CPO price declined to RM3,631.50 per tonne or 24.9 per cent on July 15 from RM4,838.50 per tonne on July 1," she added.

Zuraida noted that the Ministry of Plantation Industries and Commodities (MPIC) has been actively monitoring developments in the industry and will continue to ensure that palm oil continues to remain a major contributor to national economic growth, benefitting all, especially smallholders and industry players.

"We have remained relentless in our efforts to rebut and correct any misconceptions raised by those out to discredit the goodness of palm oil via their anti-palm oil campaigns.

"I have personally headed numerous trade missions to several countries to meet industry players there and create a greater awareness on the numerous benefits and uses of palm oil, apart from being used as cooking oil," she said.

MPIC through its agencies and councils will be holding the Malaysia International Agricommodity Expo and Summit (MIACES) from July 26-28, 2022 at Malaysia International Trade and Exhibition Centre (MITEC), Kuala Lumpur, which will involve the participation from 39 countries.

It is one of the efforts to promote the country's agricommodity sector and promote Malaysia as an international hub for agricommodity activities.