KUALA LUMPUR, Sept. 12 (Xinhua) -- Most analysts on Tuesday maintained crude palm oil (CPO) prices forecast although Malaysia's August palm oil stocks hit a seven-month high.
UOB Kayhian said in a note that Malaysia's August palm oil inventory came in higher than market estimate mainly due to lower-than-expected exports and domestic consumption.
The research house expects Malaysia's palm oil inventory level to increase marginally, driven largely by higher production, while exports remain sluggish.
It also maintained its view that CPO prices would trade at the range of 3,800 ringgit to 4,200 ringgit per ton.
Meanwhile, Affin Hwang Investment Bank said in a note that it believes demand for Malaysian palm-oil products will stay healthy partly due to the price competitiveness of CPO against other vegetable oils.
Overall, the research house expects CPO prices to remain volatile due to the market, geopolitical and weather uncertainties that could have an impact on crop production and prices.
"We expect CPO prices to remain volatile in the near-term, but no changes to our CPO average selling price (ASP) assumptions of 3,800 ringgit to 4,000 ringgit per ton for 2023," it said. (1 ringgit equals 0.21 U.S. dollars) ■