World palm oil production will grow by only 0.2-0.3 million tons

Global production of palm oil, which accounts for a significant share of the edible oil market, will grow by 0.2-0.3 million tons in 2023/24 MY, the lowest growth rate in the last four years, said Thomas Mielke, Chairman of Oil World (Germany).

This is due to the fact that global demand for edible oil is expected to grow by 5.6 million tons in the same season, he told the conference in Bali, Reuters reports.

According to Milke, tight supply means that palm oil prices should rise by at least $100 per ton in the next four to six months.

Futures for benchmark palm oil FCPOc3 on Malaysia’s Bursa exchange are expected to trade in the range of 3,700 to 4,500 ringgit ($952) a tonne through June, Dorab Mistry, director of India’s Go consumer goods company, told the conference.

On Friday, the contract was trading at 3,790 ringgit ($802).

According to Mistri, palm oil production in the world’s largest producer, Indonesia, is expected to decline by at least a million tons next year, while production in Malaysia will remain unchanged.

Tags: prices, palm oil