According to the Malaysian Palm Oil Board (MPOB), the country’s palm oil inventory rose 6.5% to 1.55 million tonnes in March from 1.46 million tonnes in February. CPO output for March grew 16.33% to 1.46 million tonnes from 1.26 million tonnes in February. Palm oil exports, meanwhile, rose 14.34% to 1.27 million tonnes from 1.11 million tonnes in February. We think [the] CPO price may decline to RM2,500 per tonne by year end,” Lim told The Edge Financial Daily when contacted. For the near term, Lim said there is limited downside for the CPO price as China and India will be buying more palm oil as the price trends nearer to the RM2,500 level, when the discount between palm oil and soybean oil grows bigger.

Source: The Edge Markets April 11, 2017 01:30 UTC