Palm oil prices likely to get a boost

Inventories fall: Malaysia May stockpile hit a 62-month low at 1.65 million tonnes, driven by low fresh fruit bunch yields on lagged effect of drought.

PETALING JAYA: Falling crude palm oil (CPO) stockpile in the country, which hit a five-year low in May, will boost prices of the commodity in the short term, but analysts say the impact on planters’ earnings will be harder to predict given the recent weak production numbers.

“It is still premature to expect a steep recovery in second quarter 2016 earnings versus full-year forecasts due to low second quarter 2016 output,” Maybank Kim Eng said in a report yesterday.