Palm oil to climb above 4,000 ringgit on signs of El Nino – Times of India

Kuala Lumpur: malaysian palm oil prices May go above 4,000 ringgit per tonne in the second half of 2023 Boy Weather patterns evolve, industry analyst dorab mistry said on Wednesday.
benchmark palm oil futures fell to 3,740 ringgit ($843.29) a tonne on Wednesday afternoon on the Bursa Malaysia Derivatives Exchange.
Mistry, director of the Indian Consumer Goods Company, said, ‘El Nino is coming. Godrej Internationalsaid at an industry conference in Dubai.
Hot, dry weather as a result of an El Niño event will reduce yields in Indonesia and Malaysia, the main producers, and increase global prices of edible oil.
world meteorological organization Last week predicted a 60% chance of the weather turning from La Nina weather pattern to El Nino in May-July this year. This probability will increase to 70-80% between July and September.
Mistry said there is scope for upside in palm oil prices in the second half of 2023, unless there is a deep global recession and fall in energy prices.
Mistry said the Black Sea export corridor between Russia and Ukraine is another big factor to watch.
He added that if the Black Sea Export Corridor remains open, palm oil futures will struggle between 3,400 ringgit and 4,000 ringgit unless weather issues play out.
Mistry forecast an increase in production to 1.5 million tonnes in 2023 from top producer Indonesia.
He pegged Malaysia’s 2023 production at 18.5 million tonnes, barely changed from last year’s 18.45 million tonnes.