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November 9, 2024 | 04:08 pm
TEMPO.CO, Bandung - The price of crude palm oil (CPO) is expected to rise further next year. Dorab Mistry, director of Godrej International Ltd, said the projected price of CPO in the Malaysian market could reach RM5,000 by June 2025.
"I think this price can still surpass the peak price. So we need to prepare for higher prices," he said at the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) on Friday, November 8, 2024, in Nusa Dua, Bali.
Dorab mentioned that the increase in CPO prices is accompanied by increasing demand from the biofuel industry and declining CPO productivity in Indonesia and Malaysia.
He is also concerned about the imbalance between rising demand and falling productivity, which may increase palm oil prices in the future.
In addition, Dorab pointed to the potential reduction in Indonesian CPO exports due to the new B40 policy as another worrying factor. "This is really something very serious because every time Malaysia and Indonesia cannot export CPO. In addition, this year Thailand also said they cannot export," he said.
In line with Dorab's statement, Transgraph Consulting Pvt Ltd managing director Nagaraj Meda said CPO prices could reach RM5,400 per metric ton in the first three months of next year.
"We forecast that the price will reach RM5,400 per metric ton in the first three months of 2025," he said at the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) in Nusa Dua, Bali on Thursday, November 7, 2024.
Meda said that this figure was expected to remain stagnant or decline in the following months. However, he stated that this price would depend on future palm oil productivity.
Earlier, the chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI), Eddy Martono, noted a decrease in palm oil productivity in 2024 compared to the previous year. Until August 2024, the national palm oil production was 34.7 million tons. Meanwhile, last year's palm oil production reached 36.2 million tons in the same period.
"Indonesia as the world's palm oil producer has experienced stagnation in palm oil production in recent years," Eddy said at the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) on Thursday, November 7, 2024.
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