CGS-CIMB Research regional analyst Ivy Ng says palm oil supply is rising faster than demand, which was impacted by the movement control order (MCO) and lower crude oil prices due to the coronavirus.
PETALING JAYA: Local planters’ earnings will remain at risk given the anticipated weak palm oil production, slower demand and higher costs amid the uncertainties led by the Covid-19 pandemic, say analysts.
The latest decision by India, the world’s largest edible oil buyer, to suspend 39 licences to import 452,303 tonnes of refined palm oil after a surge in duty-free purchases from neighbours such as Nepal and Bangladesh, will also hurt the uptake of palm oil from Malaysia and Indonesia.
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