The El Nino conundrum

RHB Research said that it needs to be a strong El Nino before CPO prices can move by over 20%, thus making a more significant difference to planters’ earnings.

PETALING JAYA: Despite a looming El Nino weather phenomenon, lessons learnt from history include the need for a strong El Nino to occur before the crude palm oil (CPO) prices can move significantly, says RHB Research.

The research house noted: “Even if we assume a 20% hike from here, 2023 average prices would still be in the RM3,800 to RM4,000 per tonne range, in line with current consensus projections.”