Palm oil down 5% dragged by labour shortage, monsoon rains
Palm oil, key ingredient for products from processed foods to cosmetics and biofuel, fell 5 percent on September 28 – the lowest level since January 2021.
Two weeks ago on September 13, Malaysian palm oil futures rose nearly 6 percent, tracking gains in rival soy oil on bleak forecast for US soybean harvest, while strong demand from key buyer India provided an added boost.
The new chief executive of the Malaysian Palm Oil Association (MPOA), Joseph Tek, said that total crude palm oil output for 2022 from the world’s second-largest grower will be 18 million tons.
MPOA represents 40 percent of planted palm by area in the country.
He also said that the labor shortage has worsened and although some applications for foreign worker quotas have been approved by the government, there are still procedural glitches.
August to October is generally the busiest harvest period.
He also spoke about how before the arrival of moonsoon rains, that damages the crop and its oil quality, the palm oil prices are looking attractive.
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