Past price behaviour points to El Nino lifting palm oil prices

Singapore

IF history is any guide, the haze cast over the palm oil sector could soon clear. Weather forecasters have finally sounded the horn for a "significant" El Nino occurrence - characterised by a prolonged dry weather event in South-east Asia - which is expected to hurt palm oil production but boost prices over the next one to two years.

This is set to usher a wave of fresh air to the sector, which has been suffering from depressed palm oil prices of late.