Coupled with rising domestic consumption, global supply will dwindle, driving prices higher. The shortage will affect the global edible oil balance as palm oil has the largest share with 31%.
Indonesia's structural output high should precede First Resources' 2021 production peak, as the Indonesian planter's trees are younger than the country's average.
Indonesia's palm oil exports fell to 68% of production in 2018 compared to 74% in 2017 as domestic demand rose, backed by favorable biodiesel economics.
Strong crude oil prices could help to sustain this trend. - Bloomberg
At 1pm, CPO for third month up RM11 to RM1,983.
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