IT has undoubtedly been a challenging year for the Malaysian palm oil industry.

Last month, crude palm oil (CPO) prices fell to RM2,143 per tonne – its lowest level since September 2015 and a 14% fall for the year-to-date.

While the price has recovered slightly over the past week, underpinned by rising crude oil prices and supported by the strength in its rival soybean, the benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed at RM2,231 per tonne on Thursday, 11% lower than the start of the year.

While these factors have managed to push prices up slightly, the gains have been capped by one major factor – high stockpiles.

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