Global golden crop shines bright on external factors but ends the year almost unchanged

Like many other commodities, Malaysia’s golden crop — palm oil — went through a whirlwind of a year. The upward trend in prices saw interest return to plantation counters that had missed out on the rally in crude palm oil (CPO) prices in 2021. The CPO spot month futures hit a high, surpassing RM8,000 per tonne, following news that Russia had launched an attack on Ukraine. Prices were also supported by the intense labour shortage in oil palm plantations, owing to Covid-19-related disruptions, but regulatory policies and softening demand from China, as a result of Beijing’s zero-Covid policy, weighed on the commodity later. The Black Sea region conflict between Russia and Ukraine contributed significantly to the increase in CPO prices, which set new records in February this year, surpassing the highest price registered in 2008. “This is an important factor that drove prices for Malaysia to an all-time high,” says Phillip Futures Sdn Bhd derivative products specialist David Ng. Palm ...