Biofuels, low inventories may lift palm oil prices

Palm oil prices are likely to rise by 10 per cent early next year as surging world demand for biodiesel is expected to increasingly reduce inventories in top producer Malaysia, a leading analyst said yesterday.

Countries such as Indonesia are also pushing to expand plantations but output from new trees is not expected for at least another two years, which would keep the market firm during that period, said James Fry, vegetable oils analyst and managing director of London-based LMC International Ltd.
Business Times