A potentially strong El nino phenomenon could provide additional support to crude palm oil prices, MBSB Research says in a note. Weather-related production risks have historically led to firmer palm oil prices as markets price in tighter supply, it says. It expects dry weather to tighten palm oil supply, with the full impact on fresh fruit bunch yields likely to emerge in 2027 due to the crop's biological lag. MBSB remains tactically positive on the Malaysian plantation sector, and pegs SD Guthrie, TA Ann and Sarawak Plantation as top picks. (yingxian.wong@wsj.com)
Strong El Nino Risk Could Support Palm Oil Prices — Market Talk
Earlier from Ta Ann Holdings Bhd
- Malaysia Plantation Sector to Be Supported by Structural Demand — Market Talk
- Indonesia's New Export Rules to Have Limited Impact on Palm Oil Sector — Market Talk
- Ta Ann Posts Q1 Profit Attributable 49.7 Million RGT
- Malaysia's Crude Palm Oil Exports Likely to Soften in April — Market Talk