Boustead Plantations expects continued volatility in palm oil prices

KUALA LUMPUR: Following a decline in profitability in the recent quarter, Boustead Plantations Bhd said the prices of palm oil are expected to remain highly volatile for the rest of the year due to high stock levels in Malaysia and Indonesia.

Compounding the challenges, the plantations group added that high production cost resulting from higher minimum wages coupled with higher fertiliser and diesel prices will continue to be a burden over the remainder of the year.