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Oil World analyst Thomas Mielke said palm oil prices should recover in the second half of 2019. He cited rising biodiesel use in Indonesia, which could add more than 3 million tonnes of consumption, and slower palm production growth.
Benchmark prices had fallen to a near four-year low of 1,916 ringgit earlier in the month before recovering.
Faster biofuel demand combined with slower output growth tightens palm oil supply, which supports higher prices in the second half of 2019 and into 2020.
ft.lkJul 31, 2019Not enough comparable past events yet for a historical read.
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.
Oil World's view of a second-half recovery, with Indonesian biodiesel demand adding consumption and slower production growth, supported rebound sentiment after the near four-year low.
Oil World's call for a second-half recovery, citing Indonesian biodiesel demand and slower output growth, supported bullish sentiment after the four-year low.
