“The recovery in CPO prices would continue on the back of: a) lower production growth after a strong recovery in 2018; b) smaller areas coming into maturity; and c) lower fresh fruit bunches (FFB) yield due to the lack of fertiliser application from end-2018,” UOB Kay Hian Malaysia Research said.
KUALA LUMPUR: UOB Kay Hian Malaysia Research remains positive on the recovery in crude palm oil (CPO) prices on the back of lower production growth with older-age tree profiles, slower replanting in Malaysia and a lack of fertiliser application.
In its research note issued on Friday it said there was no major impact from a weak El-Nino on 2019 production, but there might be a mild impact in 2020.
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