IN BRIEF: Anglo-Eastern sees higher palm oil prices, lower production

Writer,

Anglo-Eastern Plantations PLC - producer of palm oil and rubber across Indonesia and Malaysia - For the first three months of 2022, crude palm oil production falls 6.6% to 107,300 megatonnes from 114,900 megatonnes the previous year. The oil's price averages $1,592 per megatonne, surging 48% from $1,078 per megatonne in the same period a year prior. Price is also higher than the $1,320 per megatonne average achieved at the start of the year.

Price rises were due to the short supply of vegetable oil caused by dry weather in soy-bean producing countries and disruption in sunflower harvest in Ukraine, it says. Company adds that the Indonesian government's ban on the export of crude palm oil and refined palm oil has cut off the supply of vegetable oil, driving up edible oil prices further. Says on Thursday this ban was lifted and thus company expects to see a pullback in crude palm oil pricing.

Production of fresh fruit bunches fell 5.0% in the quarter to 268,700 megatonnes from 281,900 megatonnes in the same period the previous year. Cites seasonal variation and plantations with older palms in Bengkulu and Kalimantan for the drop in production.

Current stock price: 855.93 pence, up 7.5% in London

12-month change: up 31%

Copyright 2022 Alliance News Limited. All Rights Reserved.