Rabobank sees higher palm oil prices next year on tightening market

In the Netherlands, Malaysia’s Star newspaper reports that Rabobank’s Agri Commodities Outlook 2021 says palm oil prices are likely to be stronger next year due to likely La Niña floods that should lower production in Southeast Asia, pandemic-related impacts and Indonesia’s planned B40 blending mandate. Even so, Rabobank expects production to rise 4% on the year to 80.3 million metric tons. Increased demand from India and China could also further support palm oil prices globally.