La Niña to support Malaysian palm oil prices following El Niño

In Malaysia, dry weather impacts from El Niño have diminished palm oil production that has shrunk production and supported prices, but analysts now believe that the forecasted La Niña phenomenon could also support prices. Shrinking demand from major importers like China have weakened prices but the weather patterns that are seeing peak production periods delayed into September and October from August will help to compensate from that demand shift. Current estimates are that 2016 production could be more than 10% lower than 2015.