Palm oil & Iran

Palm oil: Palm oil production, particularly in Indonesia and Malaysia, is sensitive to expected temperature rises from El Ni , with impacts on fresh fruit bunch formation and oil extraction rates expected 6-12 months later.

Iran: The ongoing Iran war has contributed to sharply rising fertilizer and gas costs, which, combined with El Ni , could drive prices even higher and exacerbate inflation in Southeast Asia.

Palm oil: Malaysian palm oil futures rose on stronger rival oils and crude oil prices, benefiting from the biodiesel feedstock demand.

Iran: Iran is the target of US blockade and airstrikes, retaliating with missile attacks. The conflict disrupted global oil trade through the Strait of Hormuz, impacting Iran's economy and regional stability.

Palm oil: Palm oil prices reached their highest level since mid-2022, contributing to the overall increase in vegetable oil prices, driven by rising global energy prices and biofuel demand.