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
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
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.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
Near sell-out launches in March boost developer sales to 1,300 units after four slow months
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025
