Rabobank revises down Malaysian palm oil price estimates due to production recovery

In Malaysia, Rabobank has revised down its estimate for palm oil prices to $574.85/mt during the second quarter as oil palms recover from the impacts of drought and begin to return to normal production levels. March production was higher than expected, weighing on prices to lower than the bank had estimated, as an example of what a lengthening of the trend could bring to the market. Increased soy plantings in the US as well as expectations of a larger soy crop in Argentina have also weighed on prices recently.