El Niño may cut Malaysian palm oil production by 3 million tons

March 9, 2016 |

In Malaysia, El Niño’s impact on palm oil production may be even more drastic than previously expected with 2015/16 production volumes potentially falling by as much as 3 million metric tons, in turn pushing prices above $730 per ton for the first time since September 2012, up 17% from current levels. Higher prices will make it difficult for Indonesia and Malaysia to comply with their biodiesel mandates which are already in jeopardy because of low fossil fuel prices. Malaysia is still confident it will make its B10 mandate while Indonesia struggled last year to reach half of its B15 mandate.

Category: Fuels

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