KUALA LUMPUR: The production of crude palm oil is expected to return in earnest next year in both Malaysia and Indonesia, OCBC Treasury Research says.

       With the Malaysian Palm Oil Board’s palm stocks returning above two million tonnes in the third quarter of 2022, it means prices are expected to remain supported through the first half of 2022, it said in its Commodity Outlook 2022.

       “In addition, our expectations of higher soybean prices mean the palm complex is also expected to be lifted higher,” the research house said.

       OCBC has forecast the palm oil price at RM4,750 per tonne next year.

       For soybean, the research house said risks remain tilted to the upside.

       Meanwhile, it said continued economic recovery and constricted supply are likely to continue fuelling crude oil higher next year.

       It said consumption growth is likely to come from Asia next year. “The increase in oil demand from multiple Asian countries in addition to supply uncertainty from the US and Opec+ could see Brent testing US$100 (RM423) per barrel,” it said. — Bernama