KUALA LUMPUR, Jan. 13 (Xinhua) -- Crude palm oil (CPO) prices should remain elevated in the short term due to slower output, a Malaysian research house said Monday.

MIDF Research said in a note that with the expected slower recovery in Malaysia's output amid low stock level, it anticipated the average CPO price to stabilize at 4,815 ringgits (1,067 U.S. dollars) per ton.

"It is crucial to note the slower palm oil production growth in Malaysia and Indonesia and the potential palm oil export ban to La Nina event and biological tree rest, could pose risks to palm oil supply availability in the first quarter to the second quarter of 2025," it said.

This could create a favorable trajectory for CPO prices, potentially driving them from 4,500 ringgit per ton to nearly 5,000 ringgit per ton in the second quarter, it projected.

Looking ahead, the MIDF opined that biological tree rest and a slower-than-expected recovery in output will persist, with local production projected to grow by only 1 percent year on year to 19.5 million tons in 2025.

It noted the continuation of an adverse weather event, such as La Nina and North-East Monsoon (Nov-Mar), could further impact crop productivity. (1 ringgit equals 0.22 U.S. dollars) Enditem

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