Uncertainties may bring volatility to CPO prices; gradual decline expected

CRUDE palm oil (CPO) prices have been kept at elevated levels 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 53 per cent. South-east Asian companies are likely to have a good run in H1 as the higher prices translate into better revenue and profit figures across the board.

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.