The annual Palm & Lauric Oils Conference and Exhibition, Price Outlook 2016/17 – co-organised by Bursa Malaysia Derivatives Bhd and the CME Group – was held in Kuala Lumpur in March. It was themed ‘Managing Market Uncertainties: Our Global Solution’. The presentations included one by Mr Thomas Mielke, Director of ISTA Mielke GmbH, the publisher of Oil World. Selected slides on ‘The slowdown of palm oil production and impact on global supply, demand and prices of major vegetable oils in 2016’ are reproduced here with his notes.

The presentations included one by Mr Thomas Mielke, Director of ISTA Mielke GmbH, the publisher of Oil World. Selected slides on ‘The slowdown of palm oil production and impact on global supply, demand and prices of major vegetable oils in 2016’ are reproduced here with his notes.

Commodity Research Bureau (CRB) Index

Prices of most commodies plummeting to multi-year lows in early 2016. They may have reached their bottom last month. Also:

  • Economic slowdown
  • High geopolitical risks
  • Financial uncertainties
  • Equity markets down in early 2016

Daily Prices of Soybean Oil & Palm Oil (US$/T)

But vegetable oil prices have escaped the bearish trend. Palm oil prices have bottomed first. Indonesian PO up US$200 since August. Also soybean oil rising, while meal is on bearish trend.

The price-elastic vegetable oil demand for energy has disappeared…

Palm Oil – World Consumption, by Category Jan/Dec 2015 Total: 61.2 Mn T

Biodiesel Use of Major Feedstock (Mn T)

World Production of 17 Oils & Fats


 

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