# CPO to average above RM4,000 per tonne in 2024 as prolonged drought curbs Indonesian output — Sime Darby Plantation

> Sime Darby Plantation expects crude palm oil to average above RM4,000 per tonne in 2024 because severe drought is limiting Indonesian output. Its Indonesian fresh fruit bunch output fell to 507,000 tonnes in the first quarter from 566,000 a year earlier, while Malaysian output rose.

- Date: 2024-05-31 · published 2024-05-31T12:00:00.000Z
- Category: weather · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/30352-cpo-to-average-above-rm4-000-per-tonne-in-2024-as-prolonged-drought-curbs
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Drought-driven shortfalls in Indonesia, the largest palm producer, tighten global vegetable oil supply and support palm prices, which are the cheapest of the vegetable oils.

## Read by commodity

- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2024-06-02 | 1 | +5.0% | 4.2 | Sime Darby Plantation said drought was curbing Indonesian output and expected CPO above RM4,000, supporting a supply-tightness narrative that lifted prices. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-08-20 | [Indonesian planters see drought hitting palm oil output](https://feedsoft.ai/events/57678-indonesian-planters-see-drought-hitting-palm-oil-output.md) | +1.6% | +4.4% |
| PALMOIL | 2023-09-29 | [Indonesian Palm Oil Association sees palm oil prices rising in 2024 as El Nino crimps domestic output](https://feedsoft.ai/events/34219-indonesian-palm-oil-association-sees-palm-oil-prices-rising-in-2024-as-el-nino.md) | -4.5% | -3.5% |
| PALMOIL | 2024-01-15 | [OCBC Research revises 2024 CPO price to average RM3,650 per tonne \| The Star](https://feedsoft.ai/events/32230-ocbc-research-revises-2024-cpo-price-to-average-rm3-650-per-tonne-the-star.md) | -0.2% | -1.4% |
| PALMOIL | 2024-05-31 | [SD Guthrie expects CPO prices to average above RM4,000 a tonne this year, says group COO \| Malay Mail](https://feedsoft.ai/events/8036-sd-guthrie-expects-cpo-prices-to-average-above-rm4-000-a-tonne-this-year-says.md) | +2.2% | +1.0% |
| PALMOIL | 2026-08-28 | [El Niño to crimp Indonesian palm oil output, producer group says](https://feedsoft.ai/events/18012-el-nino-to-crimp-indonesian-palm-oil-output-producer-group-says.md) | +4.5% | +1.3% |

## Sources

- theedgemalaysia.com: https://theedgemalaysia.com/node/713867

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.