Palm oil prices seen going lower for the rest of this year and into 2018

Lower prices: A file picture showing workers standing near oil palm fruits inside a palm oil factory in Sepang. The CPO price has dropped by over 22 so far this year. – Reuters

PETALING JAYA: Looming bearish fundamentals will likely drag crude palm oil (CPO) prices lower for the rest of this year and going into 2018, say analysts.

The CPO price has dropped by over 22% so far this year on market expectations that local production will jump by 12.6% to 15.5%, pushing production up to 19.5 million to 20 million tonnes this year reflecting strong post El-Nino recovery.