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BMI, the research arm of Fitch Group, warns that El Niño could cut Indonesian crude palm oil output through below-average rainfall and higher temperatures. It also flags that export levy revenue could fall if production weakens.
A likely drop in Indonesian palm output during a B50 rollout would tighten global vegetable oil supply and support prices, while the weather risk keeps CPO prices elevated.
After 181 past bullish weather events, Palm Oil moved a median +0.5% over 5 sessions (56% higher; middle half -0.9% to +1.9%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.