No strong palm oil rally seen this year

Steady supply: As at end-January, the palm oil stockpile stood at 2.55 million tonnes on the back of 1.59 million tonnes in production.

PETALING JAYA: The current weak La Nina weather phenomenon is not likely to push crude palm oil (CPO) prices to the RM3,000-per-tonne level this year.

La Nina, which normally brings in heavy rainfall, is favoured for fresh fruit bunch development and higher yields in oil palms compared with the El Nino dry weather phenomenon that disrupts yields in estates.