The production of palm oil in Southeast Asia will probably fall in 2016 due to drier El Nino weather conditions.
Indonesia is the world's largest producer of palm oil; where do you expect a harvest shortfall of two million tons, while Malaysia, the No. 2 among exporters of the world, will reap 1.2 million tons of less, so the estimate of a trader in Singapore.
In 2015, Indonesia earned 35.5 million tons and Malaysia 19.96 million tons of vegetable oil. The loss compared with the previous year would put so to around 5.7%.
End of March the prices of Palmölfutures rose to a 2-year high, since then press Chinese commodity markets on prices.
