Positive profit indicators for oil palm planters

Analysts say that this year, local planters could stand to gain from the CPO average selling prices of between RM2,500 and RM2,800 per tonne.

THE current steep crude palm oil (CPO) price trading above RM3,000 per tonne and the lower palm oil inventory are positive profit indicators for oil palm plantation companies moving into year 2017.

But analysts say that local planters’ profit margins this year could be undermined by escalating production costs, particularly in fertilisers, due to the weakening ringgit against the US dollar, the full-year impact of minimum wages and uncertain export markets outlook.