CPO price seen to be 20% down this year, profits may be affected

Malaysian palm oil futures fell to their lowest in nearly three years on Friday evening in a fourth session of losses, tracking declines in related edible oils.

PETALING JAYA: Analysts have pegged the average crude palm oil (CPO) price for this year to drop by over 20% at RM2,260-RM2,280 per tonne, compared with RM2,815 per tonne recorded in 2017.

This will also drag on the full-year profit margins of local planters, who are mostly dependent on stable CPO prices.