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Market uncertainties could hit CPO price, companies’ H2 earnings; gradual price decline expected 

Uma Devi

Uma Devi

Published Mon, Apr 25, 2022 · 06:57 PM
    • In H2, investors should brace for volatility in the palm oil market, and analysts are expecting a “gradual decline” in the commodity’s prices.
    • In H2, investors should brace for volatility in the palm oil market, and analysts are expecting a “gradual decline” in the commodity’s prices. REUTERS

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    CRUDE palm oil (CPO) prices have been kept at elevated levels so far this year, but the numerous uncertainties in the industry mean investors need to keep a close eye on palm oil stocks’ earnings for H2. 

    Year to date, CPO prices are up around xx per cent, and companies had a good run in H1. A confluence of factors such as tight supply, bad weather conditions, the spike in crude oil prices, as well as geopolitical tensions, have kept prices at higher levels. 

    In H2, investors should brace for volatility in the commodity’s prices, and a correction in prices could well be in the pipelines. 

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