Palm oil supply likely to be tight next year

Global output of palm oil is expected to grow by 0.2 million to 0.3 million in 2023 and 2024 – the lowest rate in four years, said Oil World's Mielke. — Reuters

NUSA DUA: Global palm oil output is likely to drop next year due to the impact from the El Nino weather pattern while demand from the edible oil and energy sectors is set to grow, supporting prices, leading industry analysts say.

Hot and dry weather is expected to continue into early 2024, worsening a steady downward trend in yields of palm oil from top producers Indonesia and Malaysia in recent years.