Indonesia’s palm oil chief says prices will rise on biofuels demand; credit crisis will have limited impact

In Indonesia, the chairman of the Indonesian Palm Oil Association said that the credit crisis would have only a limited impact on palm oil prices, and predicted that increased demand from biofuels would increase palm oil prices. The December CPO contract is trading at $674 per tonne on the Bursa Malaysia exchange, down almost 50 percent from peak prices in March. Indonesia confirmed last week that it will impose a biofuels mandate in order to reduce emissions and diversify its energy mix.

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