Lower stockpiles, stronger exports and haze to boost palm oil prices

Crackdown order: Indonesian firefighters battling a fire at a oil palm plantation in Pekanbaru, Riau. Worsening haze conditions in the region led to Jokowi ordering a crackdown on individuals and companies responsible for forest fires. — AFP

PETALING JAYA: Crude palm oil (CPO) prices are on the rise, as lower stockpiles in Malaysia, stronger exports and the dry, hazy weather conditions give a positive outlook for prices heading into next year.

Yesterday, the third-month benchmark CPO futures for December contract on Bursa Malaysia Derivatives Exchange shot up to a high of RM2,297 per tonne before closing RM61 higher at RM2,282 per tonne, as the current haze situation in the South-East Asian region continued to worsen.