After lower production and tight inventory fueled a 10-month rally in prices of palm, soy, rape and sunflower oils, industry watchers expected prices to cool by March -- seasonally the time when production of palm and soybean oils picks up.
nvestors pricing in a larger downside risk to crude palm oil (CPO) prices, the impact of Indonesia’s high tax on refined palm oil, and environmental, social and corporate governance (ESG) concerns are the key factors keeping plantation companies' share prices from performing in tandem with the CPO price movement.
Malaysia recorded an FFB yield of 16.73 tonnes of oil per hectare last year compared with 17.19 tonnes and 17.89 tonnes in 2018 and 2017 respectively. The indicator peaked in 2017 before the current downward trend.
Malaysian palm oil futures rose as much as 3% on Wednesday, closing at their highest in nearly two weeks on the back of strength in competing oils on the Dalian Commodity Exchange and the Chicago Board of Trade, and fears of a supply squeeze.