Palm oil producers look to lock in high prices

With crude palm oil prices rising 30% in the last six months, interest in hedging downside risk from palm oil producers is on the increase. So are producers locking in prices now or waiting for the market to rise even further?

For many, the thought of a palm tree evokes visions of summer vacations at idyllic beaches. In Asia, however, the humble palm has evolved to become far more than a hook for holidaymakers to hang their hammocks on.

Malaysia and Indonesia are the world’s largest planters of oil palms, as well as the most active producers and sellers of its products, with China and India the largest importers. Crude palm oil (CPO) is listed on the Bursa Malaysia exchange, with CPO futures contracts regarded as the