Palm Oil Supply Concerns to Lift Prices this Year

Stagnating production and dwindling stockpiles will underpin palm oil prices relative to other edible oils in the near term, according to Dorab Mistry, director at Godrej International Ltd. at the Palm & Lauric Oils Price Outlook Conference in Kuala Lumpur this week.

Production in top grower Indonesia may fall by at least a million tons in 2024, while Malaysian output could remain flat, said Mistry.  The trend is likely to last at least five years, as the industry contends with aging trees, erratic weather, and little improvement in farming practices, he said in an interview at the sidelines of the Conference. While production of other oilseeds is set to climb this year, “palm oil is unfortunately the laggard”, he said.