Dryness in SE Asia could negatively impact palm oil supplies for two years

In Malaysia, dryness in parts of Malaysia, Indonesia and Thailand is expected to reduce palm oil yields that will in turn support prices to above $920 per ton. Impacts from the dry weather won’t likely be seen until October through December, but could last as much as two years. Just 5% reduction in production could equate to 2.7 million tons in losses which could impact the market significantly.