KUALA LUMPUR, Dec. 13 (Xinhua) -- Analysts on Wednesday maintained crude palm oil (CPO) prices amid tight supply and El Nino.

Hong Leong Investment Bank Research said in a note that Malaysia's palm oil stockpile will likely remain flattish in December.

However, it noted that seasonally low production which it believes has started kicking in since November will be offset by weak near-term demand sentiment.

The research house maintained 2023 to 2024 CPO price assumptions of 3,850 ringgit per ton and 4,000 ringgit per ton as it expects El Nino's impact on palm production and prices to kick in around mid-2024.

RHB Investment Bank Research continues to expect a higher CPO price environment in the first half of 2024, in anticipation of a weaker El Nino affecting peak output in the second half.

The research house maintained its CPO price assumptions for now, 3,900 ringgit, 3,900 ringgit and 3,800 ringgit per ton for 2023, 2024 and 2025.

RHB opined that lower production in the months ahead should be offset by softer demand in the export market, given the high stock levels.

It said this was potentially leading to Malaysian palm oil stocks staying above the 2 million tons mark until the year-end, at least.

Affin Hwang Investment Bank, on the other hand, expects global vegetable oil prices to remain volatile in the near-term given the continuous uncertainties surrounding the geopolitical tensions as well as changes in weather patterns that could have an impact on crop production.

The research house made no changes to its CPO average selling price assumptions of about 3,800 ringgit per ton for 2023 and 4,200 ringgit to 4,400 ringgit per ton for 2024.

Malaysia's 11 months CPO price averaged at 3,821 ringgit per ton, significantly lower than 5,167 ringgit per ton a year ago. (1 ringgit equals 0.21 U.S. dollars)