Palm oil prices have soared to levels not seen since mid-2022, driven by significant rainfall and flooding that recently affected production in Malaysia. Last week, futures for this major global commodity, originating primarily from the world’s second-largest producer, climbed to US$1,170 per tonne.
A study released by Nikkei Asia revealed that palm oil output for October experienced a 7% decline compared to the same month in 2022.
A combination of decreased production in Malaysia and an increase in export tariffs imposed by Indonesia has created a supply constraint, leading to skyrocketing prices, as highlighted by Nikkei Asia.