Analyst sees palm oil prices crashing to six-year lows later in 2015

In Malaysia, key palm oil analyst Dorab Mistry expects the biodiesel feedstock price to fall to six-year lows of $514 per metric ton as a result of increased production. Prices have already fallen 19% this year, following petroleum prices lower, and though production will remain off through June, it is expected to pick up afterwards and weigh on prices to the key floor price not seen since March 2009. For palm oil to regain market share, the soy oil premium needs to reach $70 per ton from the current $50 per ton.