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Fundamental supply and demand balance is expected to remain tight, says Golden Agri-Resources

Khairani Afifi Noordin
Khairani Afifi Noordin3/1/2022 03:55 PM GMT+08  • 4 min read
Fundamental supply and demand balance is expected to remain tight, says Golden Agri-Resources
Factors include labour shortages in Malaysia, high fertiliser prices and unfavourable weather conditions.
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Labour shortages in Malaysia, high fertiliser prices, unfavourable weather conditions and the ongoing conflict in Ukraine and Russia are some of the factors that contribute to the current tight fundamental supply and demand balance for edible oils, said Golden Agri-Resources (GAR) director of investor relations Richard Fung.

In a financial result media briefing, Fung said the tight supply is evident in the reported low inventory levels. “For example, the Malaysian Palm Oil Board has [reported] slightly over 1.5 million tonnes and [this is] expected to go even lower to a multi-year low."

He added that while GAR expects palm oil to see some production growth this year, it will only partly alleviate the very tight supply and demand balance.

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