KUALA LUMPUR: Malaysia benchmark crude palm oil futures will average RM3,760 a tonne in 2023, down from RM4,920 in 2022, pressured by lower gasoil prices, leading analyst James Fry said on Wednesday.
Palm oil futures contract will trade at RM3,350 per tonne by the end of the year, Fry, the chairman of commodities consultancy LMC International, said at a conference.
Because of the Russia-Ukraine war, historically high gasoil prices have made it the price band floor for vegetable oil prices, instead of Brent crude oil, Fry said.
"The futures markets indicate gently falling crude and slightly faster falls in gasoil prices", he said.
Palm oil prices track movement on crude and gasoil futures as the vegetable oil is used as biodiesel feedstock. - Reuters
