Falling palm oil production pushes up prices
FALLING palm oil production from Indonesia and Malaysia is sending up prices leading to greater competition from other crops such as soyabean and rapeseed.
A drop in production from the two countries means the palm oil now commands a premium of M$60 (£9.60) a tonne on the Malaysian Commodity and Monetary Exchange.
But world exports of vegetable oils have risen by about 100,000 tonnes, leading to a net swing of about 600,000 tonnes away from palm oil to other oils such as soyabean, rapeseed and canola.
Analysts said palm oil supplies were likely to increase during the second quarter in Malaysia. Supplies from Indonesia were more difficult to assess.
- Financial Times 21/01/99 page 40