Reduction of export duty on palm oil in Indonesia puts pressure on Malaysia: palm oil price forecast for 2024.

The recent decrease in export duty on palm oil in Indonesia may put pressure on palm oil exports from Malaysia, according to a note by Chong Ho Leong, an analyst at Public Investment Bank. It is expected that the new duty will reduce the gap between prices of crude palm oil in Malaysia and Indonesia from 290 to 181 ringgit per tonne, which could lead to a loss of market share for Malaysian palm oil.

According to the analyst, this could further intensify the pressure on Malaysia's processing industry, which is struggling to survive in the face of growing competition. Public Investment Bank assesses Malaysia's plantation sector as neutral and forecasts the price of crude palm oil at 3800 ringgit per tonne in 2024. The latest delivery contract in December on the Bursa Malaysia Derivatives exchange was at 3879 ringgit per tonne, as reported by WSJ.

Malaysian palm oil futures continue to rise for the third consecutive session. Over the week, the contract increased by about 3.1%.