Palm oil stocks book strong performance but face volatility, demand destruction ahead
Although CPO futures are up about 43% year to date, observers warn that prices could correct soon amid higher supply and more favourable weather conditions
Singapore
CRUDE palm oil (CPO) companies in the region booked a solid set of financials in the most recent reporting period, as palm oil prices soared on the back of tight supply and bad weather, as well as a spike in crude oil prices due to geopolitical tensions.
The outlook for 2022 remains optimistic. Palm oil futures are up about 43 per cent year to date, having touched a historic high of RM8,163 (S$2,622) per tonne on Mar 1. But the recent decline also reflects expectations of increased supply as well as concern that global growth might be derailed by inflation and geopolitical risks.
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