Palm oil prices set to drop
A rebound in Southeast Asia’s palm oil production this year is forecast to drag down prices of the tropical product in the second half, with additional pressure coming from an expected slowdown in demand from top importers India and China. Tight supplies following a drought in 2015-16 are expected to support the market over the next two months, but downward pressure should build from May as output picks up in Indonesia and Malaysia, analysts and industry officials said at a conference in Kuala Lumpur. Benchmark Bursa Malaysia crude palm oil futures fell to their lowest since early November last week on slowing demand and the outlook for higher production. On March 8, the main contract slid a second day to hit a low of 2,821 Malaysian ringgit ($634.40) a metric ton. More than 1,600 delegates are in Malaysia for one of the world’s biggest edible oil conferences, ending yesterday.
