Palm oil production remains below last year's level – palm oil prices remain fixed Palm oil is a dominant factor for the market of vegetable oils with a share of about 30%. Normally, palm oil is one of the cheapest products in this range, and thus plays a leading role . Almost 90% of global production takes place in Indonesia and Malaysia. The palm oil production has suffered greatly but in the last year as a result of the El Niño drought. The effects are noticeable until recent times. The usual seasonal increase in production until in the Oct/Nov. 2016 into is still not really got under way. It emerges that the previous high probably will be missed. Despite political uncertainties through export taxes and adding constraints exports from Malaysia have grown in recent years again. Inventories were reduced systematically with the result that the initial decline in prices have increased again to medium level. The muted expectations of future production increases can continue to expect a fixed price level. The price of crude oil increased by reduction of oil production in the OPEC countries is a welcome support for the remainder of the palm oil prices. The question is, for how long and what dimension projects an abbreviated oil flow will be . The experiences of previous years are evidence of a low stamina of OPEC countries due to their high financial need. Biodiesel from vegetable oils is price linked to mineral diesel from crude oil. Price pressure comes from the soy market, whose high Erwartungen an US bumper crop ahead already cast their shadows. In the next few weeks which is main harvest time under predicted favorable conditions take place. Experience has shown that leads to a high range in a short time. Since over 2 years just canola market supplied worldwide benefiting from high crude oil and palm oil prices, remains but due to its smaller market volume included in the price-determining framework of competitors.
