by NUR HANANI AZMAN/ FILE PIX
Moody’s Investors Service raised its medium-term price sensitivity range for crude palm oil (CPO) to MYR2,200 – MYR2,600 per tonne, with a midpoint of MYR2,400 per tonne.
This is around 14% higher than the MYR2,100 per ton midpoint of our previous price range of MYR1,900 – MYR2,300 per ton, said the international ratings agency
“While CPO prices will likely remain above our revised price range in the coming months because of continued supply constraints, average CPO prices over the last five to 10 years of MYR2,400 – MYR2,500 per ton suggest that the current high of around MYR3,500 per ton is unlikely to be sustained.
“Tighter supply will support CPO prices in the coming 12 months,” it said in a report titled “Palm oil — Asia: Supply constraints underpin the increase in our price sensitivity range for crude palm oil”.
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