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Malaysian analysts expect lower crude palm oil prices in 2023

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Malaysian analysts expect lower crude palm oil prices in 2023

Malaysian analysts expect lower crude palm oil prices in 2023

Malaysian analysts on Wednesday foresaw crude palm oil (CPO) prices to trend lower in 2023 on increased supply and slow demand.

Malaysia’s leading securities and investment group, Affin Hwang Investment Bank, said in a note that it believed that CPO prices could be supported at 3,700 ringgit.

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That’s about 846 dollars to 4,000 ringgits (914 dollars) per tonne in the short-term, given the seasonally low production period in major producing countries of Indonesia and Malaysia due to the monsoon season.

However, for the full year of 2023, it anticipated CPO prices to potentially be lower year on year given the expectation that global production.

Production of the eight major vegetable oils would increase further in the 2023 season.

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Also, it said the looming global recession could potentially curb consumption in many markets.

According to the research house, there are many uncertainties and price-determining factors to watch out for, which included the global harvest progress and actual yields achieved for all major edible oils.

Read Also: World Bank downgrades 2023 global growth forecast to 1.7%

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And quantum of purchases from major importing countries, uncertainty over the export corridor for Ukrainian products, biodiesel production, weather developments, as well as Malaysian and Indonesian production and stock movements.

“We are keeping our CPO average selling price assumptions of 3,100 ringgits (709 dollars) to 3,200 ringgits (732 dollars) per ton for 2023,’’ it said.

Meanwhile, Hong Leong Investment Bank Research said in a note that it maintained the 2023-2024 CPO price assumptions of 4,000 ringgits (914 dollars) per ton to 3,800 ringgits (869 dollars) per tonne.

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“We believe CPO price will sustain at above 4,000 ringgits (914 dollars) per ton over the next few months, possibly until the first quarter, and start trending down from the second quarter onwards,’’ said the research house.

It said the CPP stockpile will likely remain on a downtrend in the next few months, on the back of a seasonally low production cycle.

CGS CIMB, on the other hand, said in a note that it expects CPO prices to average 3,800 ringgits (869 dollars) per ton in 2023.

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It predicted that the workers’ shortage issue would ease in mid-2023, boosting palm oil production.

However, it added that costs of production may stay high due to the full-year impact of minimum wage and higher fertiliser costs.

CGS CIMB expects CPO prices to soften from the second quarter onwards this year as palm oil output recovers with the entry of more foreign workers, while slower global growth could curb demand.

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According to CGS CIMB, Malaysia’s total palm oil output grew 2 per cent to 18.45 million tonnes in 2022.

The rising mature palm oil area more than offset lower CPO yields due to shortages of foreign workers. (Xinhua/NAN)

Malaysian analysts expect lower crude palm oil prices in 2023
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Tinubu arrives Katsina to receive Buhari’s body for burial

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President Bola Tinubu, on Tuesday arrived in Katsina to receive the remains of the former President Muhammadu Buhari, who passed away in London on Sunday at the age of 82.

The News Agency of Nigeria (NAN) recalls that Vice-President Kashim Shettima departed London in the early hours of Tuesday with the remains of Buhari back to Nigeria.
On arrival at the Umaru Musa Yar’adua Airport Katsina, Tinubu was received by Gov. Dikko Radda,  former Vice-President Yemi Osinbajo, governors, Chairman of Dangote Group, Alhaji Aliko Dangote, Deputy Senate President, Jibrin Barau, and Speaker of the House of Representatives,  Tajudeen Abbas.
Others are Ministers, former governors, former and serving Senators, Alhaji Dahiru Managl,  former Minister of Information and Culture, Lai Mohammed, members of the All Progressives Congress (APC) National Working Committee (NEC), amongst others.
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“He Never Turned His Back on the Needy” — Tributes Pour In Ahead of Buhari’s Burial

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Just hours before the burial of former President Muhammadu Buhari, heartfelt tributes have continued to pour in from beneficiaries of his many charitable deeds, with many describing him as a man who never turned his back on the needy.

Speaking to the News Agency of Nigeria (NAN) on Tuesday, Aminu Daura, a respected community elder, recalled how Buhari consistently provided foodstuffs during Ramadan for families, friends, widows, and orphans in his hometown.

“He never made noise about it, but many homes had food on their tables during fasting period because of him,” Daura said.

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Abdullahi Sani, a physically-challenged man who received a tricycle from the Buhari Foundation in 2021, was overcome with emotion while speaking to NAN.

“I can move around and feed my family today because of Baba Buhari. I pray to Allah to reward him for giving hope to people like me,” he said, in tears.

Hajiya Fatima Yahaya, another resident, remembered Buhari’s acts of kindness during festive seasons.

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“Even after he left office, his aides ensured that the usual support still reached us every year. He always remember his people,” she said, referring to his distribution of Sallah rams and food items to indigent families during Eid celebrations.

Other residents of Daura also shared memories of how the late former president quietly paid school fees and medical bills for struggling families, actions rarely publicized.

“Some of us benefited from his silent interventions. He was a true father and a great figure in the society,” said Ali Saidu.

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On Monday night, Imams across various mosques in Daura held special Qur’anic recitations, praying for the forgiveness of Buhari’s sins and his eternal peace.

The Chief Imam of Daura Central Mosque, Sheikh Musa Kofar Barau, described Buhari as a humble leader whose legacy of service and compassion would remain alive in the hearts of the people.

Buhari is scheduled to be buried later on Tuesday in his hometown of Daura, Katsina State, in line with Islamic rites. The community is bracing to welcome thousands of mourners from across Nigeria and beyond.

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King Mohammed VI Mourns Buhari, Praises Legacy of Nigeria’s Former Leader

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His Majesty King Mohammed VI of Morocco has extended heartfelt condolences to President Bola Tinubu, the family of the late former President Muhammadu Buhari, and the entire Nigerian people following Buhari’s death.

In a message of sympathy, the Moroccan monarch described the passing of the former Nigerian leader as a “sad occurrence,” expressing deep sorrow over the loss.

King Mohammed VI hailed Buhari as “an illustrious leader who worked untiringly to serve his country’s best interests and lead his people toward further progress and prosperity.”

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He added: “Our thoughts and prayers are with you and the bereaved. I share your grief and want you to know how much I appreciated the working sessions I had with the deceased.”

Reflecting on their bilateral engagements, the king noted that his collaboration with Buhari led to the launch of promising development projects, “ushering a new era grounded in friendship and close cooperation between our two sister nations.”

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