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Kuala Lumpur, Malaysia | Xinhua | Fitch Solutions on Monday maintained its palm oil average price forecast this year at 5,200 ringgit (1,160 U.S. dollars) per ton, seeing a slight recovery in palm oil prices from its recent decline.
The Fitch group unit said in a note, for the remainder of 2022, it sees a slight recovery in the palm oil price from the year-to-date lows seen in July and early-August.
This is because that the price-led demand destruction that took place in the first half is unwound, with vegetable oil importers in major consuming nations, such as India and China, resuming or increasing foreign purchases of palm oil.
Besides, it said Indonesian palm oil inventories start to decline or, at least, accumulate at a slower rate.
Fitch Solutions, however, did not see a return to the historically elevated price levels in the first half, as it did not expect Indonesia to reintroduce its short-lived palm oil export ban. (1 ringgit equals 0.22 U.S. dollar)
