JAKARTA. The bad weather turned out to be blessing for plantation issuers, as La Nina has brought positive sentiment for crude palm oil (CPO) price rise. Furthermore, the storm is expected to be more deteriorated. La Nina has affected to the increase in rain intensity that may be an advantage for improving the quality of palm products. However, the extremely high rain intensity may deteriorate the palm production. “Floods may interrupt (palm) production”, said Investor Relations at PT Sampoerna Agro Tbk (SGRO) Michael Kusuma on Tuesday. Analyst at KDB Daewoo Securities Andy Wibowo Gunawan said that La Nina may occur in 2016 and 2017, as well as interrupt Malaysia’s CPO production in a short time. Aside of Indonesia, Malaysia is one of the biggest CPO producers in the world. “We are not sure that Malaysia can maintain the increase in CPO productions” Andy wrote in a research at the beginning of this week.
Bad weather brought blessings for CPO
JAKARTA. The bad weather turned out to be blessing for plantation issuers, as La Nina has brought positive sentiment for crude palm oil (CPO) price rise. Furthermore, the storm is expected to be more deteriorated. La Nina has affected to the increase in rain intensity that may be an advantage for improving the quality of palm products. However, the extremely high rain intensity may deteriorate the palm production. “Floods may interrupt (palm) production”, said Investor Relations at PT Sampoerna Agro Tbk (SGRO) Michael Kusuma on Tuesday. Analyst at KDB Daewoo Securities Andy Wibowo Gunawan said that La Nina may occur in 2016 and 2017, as well as interrupt Malaysia’s CPO production in a short time. Aside of Indonesia, Malaysia is one of the biggest CPO producers in the world. “We are not sure that Malaysia can maintain the increase in CPO productions” Andy wrote in a research at the beginning of this week.