KUALA LUMPUR (Reuters): A top palm oil industry analyst on Tuesday said Indonesia's plan for the widespread use of the palm-oil based B40 biodiesel from next year would be "catastrophic" for the global market, as it would involve the additional use of 1.5 to 1.7 million metric tons of the commodity.
Oil World senior analyst David Mielke also said global palm oil production is expected to increase by 2.3 million metric tons in 2024/25 compared to the previous season.
Meanwhile, in Kuala Lumpur, Palm oil is likely to trade around 4,000 ringgit ($933.49) per metric ton in 2025, an executive of consultancy Glenauk Economics told an industry conference on Tuesday.
Malaysia's benchmark crude palm oil futures are currently trading at a five-month high. Prices have traded at an average of 4,062.50 ringgit a ton so far this year.
Malaysia's palm oil production is estimated to come in at 19.4 million tons in 2024, Glenauk's managing director Julian McGill told the event.
Palm oil output in Malaysia, the world's second-biggest exporter of the vegetable oil, came in at 18.55 million tons in 2023.
McGill also said 2024 output in the world's biggest exporter Indonesia was likely to be 1 million tons lower than the 54.84 million ton produced in 2023. - Reuters
