Friday, November 27, 2015

Palm Oil Facing `Powerful Cocktail' of El Nino, Fuel Demand - Bloomberg Business

Palm Oil Facing `Powerful Cocktail' of El Nino, Fuel Demand - Bloomberg Business: "Palm oil will probably extend its rally next year as the worst El Nino in almost two decades curbs output in the world’s biggest producers and Indonesia uses more for fuel, according to delegates at a conference in Bali. Futures climbed to the highest in more than two weeks.
The most consumed cooking oil found in everything from candy to instant noodles has jumped 26 percent from a six-year low in August after drought and smog hurt plantations in Southeast Asia. At the same time Indonesia is raising the amount of palm blended with diesel to 20 percent from 15 percent. That’s boosted futures as prices of other farm commodities slump.
“El Nino and the Indonesian biodiesel mandate are a powerful cocktail that has the potential to drive prices in 2016,” Dorab Mistry, director of Godrej International Ltd., said in an interview."



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