Global palm oil market to record narrow deficit this year

THE global palm oil market is expected to produce a narrow deficit of 100,000 tonnes in 2022 and 2023, the first annual net negative position since 2015/2016, due to an increase in the Indonesian biofuel blending mandate, according to Fitch Solutions.

Nonetheless, Fitch Solutions Country Risk and Industry Research is maintaining its near-term palm oil price forecasts of annual averages of RM3,800 per tonne through 2023, albeit with upside risks, and RM3,400 per tonne through 2024.