Fitch Ratings sees improved weather capping CPO prices in 2017

December 6, 2016 |

In Indonesia, improved weather conditions has boosted crude palm oil production so much that prices aren’t expected to increase in 2017 despite domestic consumption tripling during 2016. Fitch Ratings says the higher blending mandate in 2016 supported by subsidies paid for with income derived from export levies made a significant impact on prices this year, but further gains aren’t expected. The ratings agency expects that increased domestic demand accounted for half of the increased CPO demand globally in 2016 but even so, the country’s biodiesel mandate only accounts for 4% of global CPO consumption.

Category: Fuels

Thank you for visting the Digest.