El Niño seen shrinking Malaysian palm oil production and supporting CPO prices

January 28, 2016 |

In Malaysia, the national palm oil council expects El Niño to negatively impact production during 2016, which combined with Indonesia’s desire to continue towards blending 20% biodiesel are expected to introduce enough uncertainties in the market to keep crude palm oil prices above 2015 levels. The council believes prices will be on average $616 per ton with a price floor of $476. The B10 policy set to come into effect in April is expected to provide economic growth by absorbing 1.2 million metric tons of biodiesel annually.

Category: Fuels

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