Fitch Solutions Country Risk and Industry Research on Friday revised up its 2021 palm oil price forecast significantly to 3,400 ringgit (about 805 U.S. dollars) per ton, from 3,050 ringgit per ton previously due to tight supply in Malaysia.

The Fitch unit said in a note that palm oil prices will remain supported in the second quarter as the market will remain tight for the time being, and as alternative oilseeds prices remain elevated.

According to Fitch Solutions, supply has been coming in below expectations in Malaysia in the first quarter, due to labor shortages aggravated by COVID-19, which is keeping stocks at multi-year lows.

Meanwhile, palm oil import demand is recovering in many different markets as economies reopen, it added.

The revised palm oil prices assumed an average of about 3,270 ringgit per ton over the rest of the year compared with spot prices of 4,012 ringgit per ton.

Fitch Solutions has also revised up its palm oil forecast in 2022 to 2,900 ringgit per ton from 2,600 ringgit ton previously.

Source:
courtesy of XINHUA NEWS AGENCY

by XINHUA NEWS AGENCY

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