Palm oil undervalued, prices could rise by $100/T

MUMBAI: Palm oil prices could rise by at least $100 per metric ton in the next 4 to 6 months as growth in supplies slows and as demand from the food and biodiesel industry rises, a leading industry analyst Thomas Mielke told an industry conference.

“Palm oil prices declined of late. At around $820 free on board basis they are currently undervalued. It appears that only a few triggers are needed to push prices higher,” Mielke said.

Palm ends lower on weaker rival oils

Growth in palm oil production has slowed down and global production is likely to rise by just 1.3 million metric tons in 2023/24 season starting from Oct. 1, he said.