Analyst says Europe’s crude palm oil price could jump up to $610 per ton

In India, Reuters reports that crude palm oil prices in Europe could rise to average $610 per ton in the first half of 2020 thanks to rising demand and slowing production growth. Industry analyst Thomas Mielke told Reuters that the “Price rise is expected due to a slow down in global production growth, rise in demand for biodiesel sector, particularly from Indonesia, and rising palm oil requirement of India and China.”

“Benchmark palm oil prices fell to a six-week low earlier this week, and closed at 2,150 ringgit ($512.88) a ton, down 0.88%, on Friday, while CPO prices in Rotterdam PALM-MYCRD-C1 were at $532.5 a ton on Thursday,” according to Reuters.

Mielke also told Reuters that “Indonesia’s 2020 palm oil production could rise 4.8% from a year ago to 46 million tonnes in 2020, while Malaysia’s output next year could fall slightly from 20.5 million tonnes in 2019” and that “world palm oil consumption could surpass production in 2019/20 as growth in production is expected to slow to 2 million tonnes from 4.8 million tonnes a year ago.”