Palm Oil Prices Expected to Remain High in 2026 Due to Weather Uncertainties and Energy Market Conditions
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Insights by Echo AI
Crude palm oil prices are forecast to stay above $1,154 per ton and RM4,700 per ton for the rest of 2026, driven by El Niño-related dry weather in Malaysia and Indonesia, which could lead to decreased production. This is compounded by bullish energy market conditions, with diesel prices surging 147% since the beginning of the year. However, a potential decline in energy prices and a build-up of stock could pose downside risks.
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