Tight supply is expected to sustain crude palm oil (CPO) prices at current elevated levels in the early part of this year.
- It is noted that the present heavier-than-usual rainfall in some of the palm oil regions and unresolved labour shortage at various plantations will continue to weigh on production.
- In addition, the first quarter is historically a low-production season for palm oil.
- Based on these circumstances, CGS-CIMB Research has projected that spot CPO prices would range between RM4,500 and RM5,500 per tonne this month.
- “Palm oil supplies are likely to stay tight in the near term, given that the first quarter is typically the low-production season for palm oil.