Low CPO prices to affect planters’ earnings

Malaysian palm oil edged up on Friday evening for its first gain in four sessions on the back of falling production outlook, after earlier hitting its lowest level since August last year on rising global vegetable oil supplies and weak demand..

PETALING JAYA: Malaysian oil palm planters’ earnings in the first quarter of this year will likely be weighed down by lower crude palm oil (CPO) and palm kernel (PK) prices.

Maybank IB Research, which has maintained its “neutral” outlook on the sector, said output recovery in the domestic oil palm sector has failed to compensate for the sharply lower average selling prices of CPO and PK.