El Niño seen helping to control Malaysian palm oil production and push up prices

January 2, 2019 |

In Malaysia, although palm oil stocks are likely to remain high through the first quarter of the year, analysts expect prices to gradually increase thanks to dry weather from an expected El Niño and draining down of stocks later on the in the year. The Australian weather bureau believes there is currently a 70% chance of an El Niño phenomenon while the World Meteorological Organization says there’s an 80% chance of El Niño by February. Increases in production are likely to be restrained by aging plantations and lack of replanting.

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