El Niño dryness sees Malaysian palm oil prices at two-week high

In Malaysia, continued concerns over dry, hot weather resulting from El Niño is helping to support palm oil futures prices to a two-week high following four days of a stronger pricing trend. Already prices have risen 11% this year thanks to lower production estimates resulting from the El Niño impacts. Prices have breached the $700 level and analysts expect prices to continue higher in the near-term. Pakistan, Bangladesh and India are thought to still be short and will need to come to the market to cover their demand.