Jakarta - DBS Group Research projects that this year's CPO price will be around US$617 per metric ton.

In its Regional Industry Focus report entitled Commodity Inflation Analysis, DBS Group Research explained that the price of Malaysian crude palm oil (CPO) rose 250% from its lowest point during the March 2020 pandemic and is currently touching the highest level of RM4,500 per metric ton (MT).

"This high price is likely to last for a while with tight supply and demand," wrote DBS research published on Friday (3/9).

The price of soybean oil and other vegetable oils also made CPO prices strengthen. Despite the rally, CPO price is still US$300 per ton below soybean oil.

"Our assumption is that the 2021 CPO price will be at US$617 per MT," he explained.

Meanwhile, the sharp recovery in global oil demand after mobility restrictions combined with OPEC production cuts caused the market to tighten at the start of the