Although inventories are at an all-time high, the price of crude palm oil remains high

(Agricultural Wealth Network) According to industry analysts, although Malaysia's crude palm oil stocks hit a record high in October, this had little impact on crude palm oil prices. CPO futures are up 32 percent so far this year, but still 20 percent below the all-time high of RM2, 789 set in May.

Palm oil stocks in Malaysia hit a ten-month high of 1.974 million tonnes in October, compared with 1.579 million tonnes in September, the Malaysian Palm Oil Board said on November 10.

Traders expect crude palm oil prices to fluctuate between RM2, 000 and RM2, 300 between now and the end of the year. However, if crude palm oil stocks exceed 2 million tons, storage capacity will be challenged and crude palm oil prices will be affected.

Rabobank recently said crude palm oil prices could fall in the coming months due to increasingly bearish fundamentals. Palm oil production in Malaysia and Indonesia shows seasonal growth trend, so stocks will be further increased.

Although the price difference between palm oil and soybean oil has begun to widen again, providing opportunities for consumers to switch to palm oil, South American soybean production is expected to hit an all-time high, which will put pressure on the entire oilseed market.