Commodities sector faces strong headwinds

KUALA LUMPUR: The local commodities sector, namely crude palm oil (CPO), rubber, tin, and gold, continues to face strong headwinds in 2018 as the global economy struggles to find its footing.

For instance, CPO, which is the country’s second biggest contributor to the economy, saw a price decline of about 20% year-to-date due to weaker fundamentals, especially so as its inventory level was nearing three million tonnes as reported by the Malaysian Palm Oil Board (MPOB).