Palm oil production in Southeast Asia, the largest growing region, is at increasing risk from the probable onset of an El Nino later this year after estates were already hurt by dryness in the first quarter. Prices advanced.
Palm oil stockpiles in Malaysia, the biggest supplier after Indonesia, probably declined for a third month in March, falling to the lowest level in three years, according to estimates compiled by Bloomberg.
Palm oil may extend its advance in April to the highest level since 2012 after dry weather in Southeast Asia hurt crops and as El Nino looms later this year, said Dorab Mistry, director at Godrej International Ltd.
Palm oil may extend a decline as supply of the most used cooking oil from Indonesia and Malaysia climbs and biodiesel demand peaks, said Dorab Mistry, director at Godrej International Ltd., signaling a third year of losses.
Palm, the world’s most-consumed edible oil, will see prices influenced by a potential El Nino weather event and increased biodiesel demand from Indonesia, according to Dorab Mistry, director at Godrej International Ltd.
Palm oil stockpiles in Malaysia, the world’s biggest grower after Indonesia, probably tumbled last month to the lowest level since September as production declined to a one-year low, a Bloomberg survey showed. Futures climbed to the highest level since 2012.
Palm oil stockpiles in Malaysia declined in February by the most in five years as production in the biggest supplier after Indonesia slumped to the lowest level since April 2012. Futures climbed to an 18-month high.
A jump in palm oil consumption for biodiesel in Indonesia, the world’s biggest supplier, will probably mean that shipments fail to increase this year for the first time since 2010 even as production climbs to a record.