The world of vegetable oil is a complex one, with prices fluctuating in response to a variety of factors. One of the key players in this industry, palm oil, is set to experience a significant surge in prices. This prediction comes from Julian McGill, Managing Director at Glenauk Economics, who anticipates that palm oil prices will rise to 4,000 ringgit per metric ton by the third quarter of 2023.
Market Dynamics Drive Prices
Speaking at an industry conference in Kuala Lumpur, McGill detailed the reasons behind this expected increase. The primary factor is the need for higher oil prices to offset the reduced earnings from meal, a byproduct produced from crushed oilseeds. With abundant supplies anticipated, meal prices are expected to face downward pressure, necessitating a compensatory surge in oil prices to maintain balance. The interplay between meal and oil prices is a fundamental aspect of market dynamics within the vegetable oil industry.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
