Bearish CPO fundamentals likely to persist

PETALING JAYA: The plantation sector’s bearish supply-demand fundamentals in April will likely persist into May, with Indonesian production and exports anticipated to escalate and pressure crude palm oil (CPO) prices as inventory rises.

In April, CPO production in Malaysia rose to 1.5 million tonnes following a 7% month-on-month (m-o-m) fall in exports to 1.23 million tonnes and lower domestic usage, resulting in local inventory levels rising to 1.74 million tonnes.