El Niño could cut Malaysian palm oil production by 2 million tons

In Malaysia, El Niño could cut palm oil production by 2 million metric tons this year as dryness expends its reach and negatively impacts production through September. Prices are already at two-year highs, so a dent in production as forecast could help to support prices even further, with some estimates pointing towards $730 per metric ton through June. Both Malaysia and Indonesia are seen missing their biodiesel blending mandates as a result of the high prices.