KUALA LUMPUR, Dec. 13 (Xinhua) -- Malaysia's Palm oil prices is expected to remain weak over the coming months, trading close to 2,000 ringgit (478 U.S. dollars) per tonne, as stocks remain elevated and constrain price growth, according to an analysis released on Thursday.
Fitch Solutions Macro Research said in a report that palm oil prices is likely to stabilize, as most of the downside has been reflected following the recent decline.
According to the report, palm oil prices this year is likely to stay at 2,280 ringgit (545 U.S. dollars) per tonne, signicantly lower than the 2,704 (646.5 U.S. dollars) ringgit per tonne achieved last year.
The research house maintained its view for palm oil prices to average slightly higher on a year-on-year basis next year, but it has revised its forecast lower slightly, to 2,300 ringgit (549.91 U.S. dollars) per tonne from 2,400 (573.82 U.S. dollars) ringgit per tonne.
"Supply will remain ample thanks to steady production growth in Indonesia, which will keep prices relatively low in 2019," the report said.