SD Guthrie sees CPO at RM4,600-RM5,000, with upside from El Nino
KUALA LUMPUR: SD Guthrie Bhd expects crude palm oil (CPO) prices to trade between RM4,600 and RM5,000 this year, with the potential to climb higher if El Nino conditions intensify.
SD Guthrie Bhd anticipates crude palm oil (CPO) prices to range between RM4,600 and RM5,000 throughout the year, with potential for further increases if El Nino conditions worsen. President and group CEO Mohd Haris Mohd Arshad stated that CPO prices should remain favorable for the remainder of the year, while the effects of drier weather on production are expected to be more pronounced in 2027.
Haris believes that SD Guthrie's year will be commendable, as the El Nino is not anticipated to influence prices this year, as they have already locked in current rates. However, Haris foresees a different outlook for 2027, as El Nino's impact on production is likely to be negative, despite higher prices potentially offsetting this.
If El Nino intensifies into a "super El Nino," CPO prices could surpass RM5,000, according to Haris. He expects market anticipation of drier conditions to begin in the second half of the year, extending into the first quarter of next year.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
