El Niño seen shrinking Malaysian palm oil production and supporting CPO prices

In Malaysia, the national palm oil council expects El Niño to negatively impact production during 2016, which combined with Indonesia’s desire to continue towards blending 20% biodiesel are expected to introduce enough uncertainties in the market to keep crude palm oil prices above 2015 levels. The council believes prices will be on average $616 per ton with a price floor of $476. The B10 policy set to come into effect in April is expected to provide economic growth by absorbing 1.2 million metric tons of biodiesel annually.

Category: Fuels