Malaysian farmers not able to reap benefits of high price due to low production

In Malaysia, falling palm oil stocks will lead to higher prices but with El Niño impacting production volumes, it’s not clear how much farmers will be able to benefit from higher prices considering the lower throughput. Stockpiles hit a 62-month low in May and the trend is expected to continue in June as well, with some analysts saying prices for CPO could reach $710 per metric ton for June/July. Prices are so far up 15% this year, but volumes are down 17% so higher prices aren’t enough to help producers recover from the impacts of low prices.