Palm oil demand will be limited if prices continue to rise

Also propping up prices is speculation Malaysia may keep duty free palm exports for January-March next year. If it does, benchmark palm oil prices are likely to jump to as high as 4,000 ringgit per tonne in January, Mistry (filepic) said.

SINGAPORE/JAKARTA: Palm oil demand may be restrained next year, as supply shortages triggered by unfavourable weather, infrastructure issues and the COVID-19 pandemic push prices up further, analysts told a virtual palm oil conference on Thursday.

Higher prices may lead consumers to look for cheaper alternatives, eventually pushing palm oil prices lower in the second half of next year, leading edible oils analysts Thomas Mielke (pic below) and Dorab Mistry said.