If the El Nino weather phenomenon does hit South-East Asia and brings about a prolonged dry spell, then palm oil prices are expected to rise between 10% and 15%.
KUALA LUMPUR: The expected onset of the El Nino weather phenomenon in June or July is expected to drive palm oil prices between 10% and 15% higher in Malaysia and Indonesia.
Phillip Futures Sdn Bhd Product Specialist David Ng said the El Nino would impact large palm oil producers, as it would drastically cut output hence reducing supply.
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