Palm oil prices stay high in 1Q,2022

Tight supply is expected to sustain crude palm oil (CPO) prices at current elevated levels in the early part of this year.

1. 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.
2. In addition, the first quarter is historically a low-production season for palm oil.
3. 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.
4. “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.