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Analysts expect crude palm oil prices to rebound in 2019 after hitting a record low of RM1,773 a tonne in 2018. Australia's Bureau of Meteorology puts the chance of El Nino at 70 percent, and the WMO cites a 75-80 percent chance by February.
Malaysia's B10 and B7 biodiesel mandates are also being phased in from December 2018.
El Nino typically cuts palm oil output, and biodiesel mandates add domestic demand, both of which could tighten supply. Expected inventory reduction supports higher prices.
themalaysianreserve.comJan 2, 2019After 181 past bullish weather events, Palm Oil moved a median +0.5% over 5 sessions (56% higher; middle half -0.9% to +1.9%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
