Dekel Agri-Vision, a company listed in London, reported a significant decline in its crude palm oil (CPO) production, as the usual low production season for the commodity extended longer than anticipated. Production levels for October showed a 17.9% year-on-year decrease, with volume comparisons also falling short compared to last year’s figures. However, despite these challenges, CPO sales prices held steady at €775 per tonne last month, reflecting a continued historically high price level.
International CPO prices rose significantly during October, reaching over €1,050 per tonne, and this increase has begun to influence the company’s November pre-sales. Dekel Agri-Vision expects a notable boost in CPO sales prices in its November report as a result. Lincoln Moore, the company’s executive director, noted that the increase in international CPO prices is beginning to impact local prices, and this shift is likely to be visible in the November monthly results. Although the extended low season has dampened production levels, Moore expects that these higher CPO prices will benefit the company as it approaches the upcoming high season.
In Summary, while prolonged seasonal factors have affected production output for Dekel Agri-Vision, the current strong international CPO prices are expected to provide support in the months ahead.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
