Institution: Indonesian policy, El Nio risks expected to drive palm oil prices in the second half of the year.

Malaya Bank analyst Ong Chee Ting stated in a report that Indonesia's B50 biodiesel policy, new export measures, and the risk of a strong El Nio phenomenon are expected to impact the price trend of crude palm oil in the second half of the year. He mentioned that shipment data from early June showed signs of recovery, but lower than normal levels of rainfall and the potential transition to El Nio conditions may hinder future production of fresh fruit bunches and push up palm oil prices. Malaya Bank maintains a neutral rating on the Southeast Asian planting sector, with SD Guthrie, Sarawak Oil Palms, and Genting Group plantations identified as preferred buy targets.