KUALA LUMPUR, Jan. 21 (Xinhua) -- The Malaysian Palm Oil Council (MPOC), a key palm oil industry group in Malaysia, foresees crude palm oil prices to be range-bound at 4,000 ringgit (about 988.36 U.S. dollars) to 4,300 ringgit per tonne in February, supported by seasonal declines in production and stocks.
The council said in a statement on Wednesday that seasonal factors are also expected to support prices, as February's shorter trading month, combined with multiple public holidays such as Thaipusam, Lunar New Year and the fasting month, is likely to weigh on harvesting productivity and constrain near-term supply.
However, the council noted that a sustained price rally in palm oil and other vegetable oils would require either a progressive rollout of Indonesia's B45 biodiesel mandate, a recovery in crude oil prices, or clarity on U.S. biofuel policy that boosts soybean oil demand.
Crude palm oil prices have remained firm, indicating that this price level is forming a near-term structural floor with limited downside risks, the MPOC said. ■