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Palm Oil Production Up Ahead of Ramadan

Q1 of 2014 has been good to palm oil producers, signalling a better-than-expected production year for many.

Historically, Q2 should also see a rise due to demand from the Ramadan season.

Indonesia’s Agriculture Ministry says that even with the threat of a dry season due to El Niño, crude palm oil (CPO) production is projected to increase approximately 7% from last year. Estimates look to be around 29 million tons, up from 27 million tons in 2013.

Palm Tree

El Niño is expected to hit at the end of the year, and although this will have little effect on this year’s production, it could result in tightened production in 2015, thereby sending prices higher.

For more details, click here to jump over to The Jakarta Post.