MUMBAI (Commoditiescontrol) - Malaysia minister of plantation industries and commodities on Tuesday expressed that palm oil in 2017 will average between 2700-2800 ringgit per tonne, down 10-14 percent from current rates of 3,130 ringgit per tonne.
That would be well below current prices for the edible oil, used to churn out everything from ice cream to shampoo and biofuels, which stood around 3,135 ringgit ($701) on Tuesday afternoon.
Minister, Mah Siew Keong in an industry event said "Palm oil price in 2016 witnessed significant gain due to robust demand from consuming countries and lower production amid El Nino.
Keong added that he expected Malaysia's 2017 palm output to grow from the previous year, without specifying figures.
Malaysia produced 173 lakh tonnes of palm oil in 2016, down 13 percent from the year before due to dry conditions from a strong El Nino weather pattern.
(By Commoditiescontrol Bureau; +91-22-40015516)