Palm oil prices seen ticking up as rains slash output and demand strengthens

MUMBAI: Palm oil prices are likely to strengthen further as excessive rain in key producing countries curbs output, while demand increases for its use in food and biofuels, industry officials said.

Palm oil prices have climbed by around a fifth this month but are still trading far below an all-time high set in March. The expected spike in prices will add to the burden of consumers already hit by inflation triggered by the Russia-Ukraine war, but higher exports and lower production would help major palm oil producers Indonesia and Malaysia bring down inventories.