Southeast Asian palm harvesting disrupted by rising cost of diesel, supply crunch

Rising fuel prices and supply shortages are disrupting palm oil harvests in Borneo and Sumatra, forcing smallholders to cut back on fruit collection. The reduced harvesting effort threatens near-term palm oil yields for the world’s most widely used edible oil, increasing supply risk and price sensitivity.

Analysis

Rising fuel prices and supply shortages are disrupting palm oil harvests in Borneo and Sumatra, forcing smallholders to cut back on fruit collection. The reduced harvesting effort threatens near-term palm oil yields for the world’s most widely used edible oil, increasing supply risk and price sensitivity.