El Nino dry weather to lead to rise in the palm oil price

Tek: ‘History has shown that CPO price reacts positively everytime El Nino occurs.’

PETALING JAYA: The El Nino dry weather conditions have already affected many oil palm plantations in Malaysia and are set to become more extreme that could last until middle of next year.

Industry players say a prolonged dry weather could negatively impact the global production of palm oil, thus triggering speculation of a higher crude palm oil (CPO) price in the coming months.