Analysts cut price forecasts for Malaysian crude palm oil

(agricultural Wealth net) he cut his crude palm oil price forecast as Malaysia's palm oil production hit an all-time high of 1.99 million tons in October, according to industry analysts.

Analysts said Malaysian palm oil production rose 27 per cent in October to 1.99 million tonnes, a record monthly production level, suggesting that palm oil stocks could rise to 2.1 million tonnes by the end of the year.

An ample supply of crude palm oil could lead to a decline in the price of crude palm oil relative to Brent crude in the next two or three months.

Palm oil stocks rose 25% at the end of October from the previous month to a 10-month high of 1.98 million tons, according to the Malaysian Palm Oil Authority.

Analysts cut their crude palm oil price estimates by 250 ringgit. If the price of Brent crude stabilizes at 75 dollars a barrel, crude palm oil could rise to 2375 ringgit by April next year.