Further palm oil tightness in Malaysia and Indonesia seen supporting prices in 2020

In Singapore, Platts reports that with crude palm oil stocks falling in both Malaysia and Indonesia, prices rose to $648 per metric ton in early December against around $500 per ton at the start of the year, but even with higher prices, the POGO spread between the cost of heating oil and palm oil futures flipped during the past quarter, opening up the albeit distant potential for discretionary blending. Further draws on stocks in 2020 are expected to support prices even more.