El Nino impact finally being priced into Malaysian palm oil futures

September 21, 2015 |

In Indonesia, the El Nino impact on oil palm production both in the country and in Malaysia could be more than expected if dryness continues for another month or two, cutting yields of fresh fruit bunches. Analysts predict that the weather phenomenon could be the strongest seen since records began in the 1950s and as such, palm oil futures markets are already beginning to price in potential cuts in yields. A Morgan Stanley analyst said “the benign pricing environment might not last”.

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