Palm oil looks for new high on India, U.S. demand

Palm oil prices are holding on to last year’s strong gains, despite a global flight from risky assets, and when industry analysts gather in Malaysia next week they are likely to say that the rally is far from over.

Industry officials said global edible oil production is likely to increase by 1.2 to 1.3 million tonnes, just sufficient to meet additional demand from the food sector.

“That is just enough for food and we have not taken biodiesel into account,” said M.R. Chandran, a leading industry analyst and a former head of Malaysian Palm Oil Association.
Reuters