Palm oil undervalued, prices could rise by $100/t – Milke analyst

Palm oil prices could rise by at least $100 per metric ton in the next four to six months as supply growth slows and demand from the food and biodiesel industries picks up, Thomas Milke, lead analyst at German analyst firm OILWORLD, told an industry conference.

“Palm oil prices have come down recently. At around US$820 FOB it is currently undervalued. It seems that only a few triggers are enough to push prices up,” Milke said.

Palm oil growth has slowed and global production is likely to rise by just 1.3 million metric tons in the 2023/24 season starting Oct. 1, he said.

Tags: prices, palm oil