0407 GMT - Crude palm oil prices are expected to remain well supported, with an upside bias toward the year-end as the effects of El Nino begin to emerge, RHB Investment Bank analysts say in a note. That is likely to provide a tailwind for the Malaysian plantation industry. Dry conditions are expected to peak between October and January, with fresh fruit bunch yields forecast to decline 10%-14% in the first year of El Nino and 3%-4% in subsequent years if dry weather persists, tightening palm oil supply, they say. Indonesia's B50 biodiesel mandate is also expected to support prices by boosting domestic consumption, they add. RHB maintains an overweight rating on the Malaysian plantation sector. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
July 27, 2026 00:07 ET (04:07 GMT)
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