Harvesting palm seed in a palm grove

Palm oil prices have jumped by nearly 50% since May 2020, rising from 560 US dollars per metric ton to nearly 1,000 in recent days and according to specialists, the trend is not ready to be reversed.

Indeed, in a context of strong demand, prices are sustained due to a tightening of supply partly due to the La Nina weather phenomenon.

Ivorian production represents only 2% of the world supply of palm oil. 481,000 t in 2017/18, up 66% in 10 years.

Nevertheless, the country imports 11% even if local production would largely satisfy its domestic demand, estimated at 352 000 t in 2017/18, an annual increase of 6% over 10 years.

If this situation could explain the recent attempt at inflation on the local market, Ivorian palm oil exports jumped by 133% between 2007/08 and 2017/18, to 219,000 t that year.

In fact, this year the profits of exporting companies are growing very strongly and the positive appreciation of their values on the stock markets has been felt for several months.

The action of Palm-ci, the only company in the sector to be listed on the BRVM, which had lost more than 80% of its value three years ago, sees an inversion of its curve. Each week the action rises gradually. Yesterday it closed at 2500 FCFA, an increase of 11% since the beginning of the year.

According to local SGIs, even if illiquid due to the prospect of very good dividends, the sale of the few Palm-ci shares put on the market could gradually, at least, double the current value of the stock.