Experts expect a further fall in the price of palm oil

After the resumption of trading on the stock exchange in Malaysia after a Christmas weekend quotes for palm oil will continue to decline, despite predictions of increased consumption and falling production.

According to experts Oil World during Oct-Mar 2019/20 MG global stocks of palm oil will be reduced by 20% or 2.8 million tonnes to 11.5 million tonnes compared to 14.3 million tonnes as of the beginning of the season and 14.4 million tonnes at the beginning of March 2019

Experts say the decline in world palm oil production, while consumption is gradually increased due to active demand from Chinese buyers and the biofuel industry (especially in Indonesia).

According to analysts, in the first half of 2019/20 MG world production of palm oil will be reduced by 1.92 million tonnes to 36,06 million tons, while consumption will rise to 1.53 million tonnes to 39.4 million tonnes.

the Main buyers of vegetable oils is not yet entering the world markets, so industry experts are watching prices of soybean oil on the stock exchange in Chicago, which gradually dropped to 685,6 $/t

Reduction in demand for vegetable oils from China continues to disturb traders, although the market is still far from the collapse of prices. An additional pressure on the quotes will be the restoration after the long weekend of trading on the Chinese and malaisse exchanges, where prices will begin to plummet.

Buyers are watching further developments in China and are holding back purchases, while sellers are not in a hurry to lower the prices, hoping that the fundamentals will keep the market from collapse.