KUALA LUMPUR: Crude palm oil (CPO) prices are expected to remain elevated in the near term, supported by the La Nina phenomenon, which will likely result in delay in soybean planting in South America and seasonally lower production cycle, according to Hong Leong Investment Bank (HLIB) Research.
The research house added that for January 2022, slower exports to China (as winter season typically slows palm oil demand from China) and India (on the back of high prices) will be mitigated by seasonally lower palm production cycle (exacerbated by the onset of La Nina and labour shortfall).