Economics
Rising Palm Output Seen Suppressing Prices With Crude Slump
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Rising production and reserves of palm oil combined with the slump in crude will suppress prices, said a minister in Malaysia, the second-largest supplier of the tropical oil used in food and biofuels. Futures fell.
“The regular build-up of stock, particularly towards the last quarter of the year, will continue to put pressure on palm oil prices,” said Plantation Industries and Commodities Minister Douglas Uggah Embas. The supply situation will be “exacerbated” by large harvests of competing oilseeds and expanding palm production in other countries, he said.