CPO prices to continue supply-led rally this year

This will be due to supply issues caused by labour shortages in Malaysia and erratic weather, says Mohd Haris Mohd Arshad, managing director of Sime Darby Oils, which is Sime Darby Plantation Bhd’s downstream arm.

CRUDE palm oil (CPO) prices are likely to remain elevated in the first half of 2022 before potentially falling in the second half.

This will be due to supply issues caused by labour shortages in Malaysia and erratic weather, says Mohd Haris Mohd Arshad, managing director of Sime Darby Oils, which is Sime Darby Plantation Bhd’s downstream arm. Mohd Haris adds that the group does not foresee palm oil production in Malaysia improving significantly in 2022, compared with 2021.