Tight supply to further lift crude palm oil prices

Uptrend: Oil palm fruits are seen in a local plantation. Factors that are pushing CPO prices higher this month include the local labour crunch and concerns over the South American drought.

PETALING JAYA: A prolonged tightness in the palm oil supply is expected to push the price of the commodity higher, which is a short-term positive for local planters.

According to CGS-CIMB Research, factors such as the recent crude palm oil (CPO) export ruling in Indonesia, drought in South America, delays in foreign worker intake in Malaysia and the low production season in the first quarter of 2022 have led to a tight supply situation.