Palm Oil Breaks Out as Supplies Continue to Decline

Crude palm oil prices jumped to a 15-week highs in February as declining inventories offset slowing demand given the drop in bean oil prices. Prices will likely continue to make headway as the El Nino impact in the second half of 2015 kicks in, lowering palm’s fresh fruit bunch yields and reducing output.

Palm oil demand growth is seen dropping in 2016, as top consumers such as India and China switch to…