2022 Prospects, Main Sentiments for CPO

Weather sentiment, labor supply, fertilization and global demand will color the crude palm oil (CPO) market in Indonesia and Malaysia in 2022.
A number of sentiments are expected to continue to color the movement of crude palm oil (CPO) prices in 2022. Meanwhile, one of these sentiments comes from the weather phenomenon, namely La Nina. In the next year, the effects of La Nina are expected to color the oil palm plantation areas in Indonesia and Malaysia. The drier weather in Latin America will encourage higher rainfall in Indonesia and Malaysia. So far Malaysia has experienced crop disruptions in its oil palm plantations in the Pahang and Selangor areas due to heavy rainfall. Heavy rains even forced the neighboring country to shut down operations of Port Klang, Southeast Asia's second largest port for several days. While Malaysia seeks to speed up the arrival of much-needed foreign workers to its plantations, an outbreak of Omicron could derail those plans, hamper harvests and limit CPO supplies. The Indonesian Palm Oil Association (Gapki) estimates that CPO oil prices are expected to remain above US$1,000 per ton in 2022. Stable prices are high driven by rising demand, while production is forecasted to grow lower.

|•SOURCE•| Articles :Bisnis | Image :PTK |

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