Palm oil prices set to stay above US$1,040 a tonne

Palm oil prices are expected to remain steady above MYR4,400 (US$1,040)/tonne towards the end of this year, amid weak crude oil prices and high vegetable oil inventories in major consuming markets such as China and India, according to Malaysian Palm Oil Council (MPOC) data reported by The Star. Ongoing US-China trade tensions and increasing global soyabean stocks would also drive price movement, according to the MPOC. Vegetable oil prices were expected to remain firm for the rest of this year, supported by strength in palm and soyabean oils, the 22 October report said. “Diminishing exportable soyabean oil supplies from Argentina are likely to lift prices in the coming months, while ongoing speculation over Indonesia’s B50 biofuel mandate will continue to lend support to palm oil,” the council said in a statement. The MPOC said palm oil was trading at a premium to soyabean oil in the global market, with prices as of mid-October at US$42/tonne higher in Europe and US$26/tonne higher ...