Palm oil market: El Niño drought drives up prices, but the competition brakes Palm oil is regarded as the market leader in the segment of vegetable oils. The market share is over 30% ahead of soybean oil. Palm oil is the cheapest among the vegetable oils in General.
The drought as a result of the El Niño weather phenomenon on the generation effect but for 2016. The production in Malaysia 2016 fell over 1 million tonnes on the previous low of something in the Feb.. In the climax of the season Sept/Oct 2015 was the crowd at around 2 million tonnes.
The high Vorratsbestände with a volume of about the 1.4 times the generation have first ensured that, despite the reduction in production prices not explosively went in the height. Declining exports also initially dampened a rapid price increase in direction from previous $800 per t.
In the meantime, however, the persistent scarcity leads to prices, the is significantly above the mark of $600 per t move. In the year 2015 were the courses in the area of scarce 500 to under $600 per t.
Palm oil prices sensitive to crude oil pricesreact as a not insignificant raw material for bio-diesel. The previous decline of in barrel prices has set the palm oil prices under pressure. The current stabilization of crude oil prices level increased from 45 to $50 per barrel, as well as rising exports have Palm oil in recent times the necessary buoyancy returned.
However, the courses in addition to the crude oil are held also by the competition from the soybean oil at Bay. The large harvest quantities in soy cause a considerable increase in supply volumes of the competing product. This close limits the increase in Palm oil prices.
Palm oil and soybean oil prices are also the orientation line for canola prices. The canola market has only a market share of about 13% at the world level and therefore the two great leaders must adapt to. But rape will be world's right just in the third year in a row. Therefore, the courses are regularly move on the top line of the competition.
