Palm oil prices continued to rise after closing at their highest level since December 2024 on Tuesday. Continued droughts in major production areas have raised market concerns about supply prospects, supporting the rise in oil prices. On Wednesday, Kuala Lumpur palm oil futures rose 0.9% to 4,905 ringgit per tonne, rising for the third consecutive trading day. David Ng, senior trader at IcebergX Sdn., said that the market expects bad weather to curb production in Indonesia and Malaysia, the world's two largest producers of palm oil, which is driving up prices. According to the weekly report released by the US Department of Agriculture on August 18, the ongoing El Niño phenomenon has led to significantly dry weather in Malaysia and Indonesia, with little or no rain in many regions. According to the report, this situation may begin to put pressure on oil palm trees and crops such as rice, corn and soybeans.

Palm oil prices continued to rise after closing at their highest level since December 2024 on Tuesday. Continued droughts in major production areas have raised market concerns about supply prospects, supporting the rise in oil prices. On Wednesday, Kuala Lumpur palm oil futures rose 0.9% to 4,905 ringgit per tonne, rising for the third consecutive trading day. David Ng, senior trader at IcebergX Sdn., said that the market expects bad weather to curb production in Indonesia and Malaysia, the world's two largest producers of palm oil, which is driving up prices. According to the weekly report released by the US Department of Agriculture on August 18, the ongoing El Niño phenomenon has led to significantly dry weather in Malaysia and Indonesia, with little or no rain in many regions. According to the report, this situation may begin to put pressure on oil palm trees and crops such as rice, corn and soybeans.