Hope for stronger palm oil prices in Q4 relies on possibility of El Niño

October 9, 2018 |

In Malaysia, palm oil prices are seeking ticking upwards come the end of the year thanks to increased demand for biodiesel on the back of higher petroleum prices but also due to expected negative impacts on production from extended dry periods during key growing periods that will likely result from an upcoming El Niño. Australia’s meteorology department are expecting a 50% chance of a heatwave but if it reaches a 70% chance, then markets will correct higher. Higher revenues will help producers breathe a sigh of relief following crude palm oil prices reaching three-year lows earlier this month.

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Category: Fuels

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