The world's largest edible oils world is a huge year, a strong combination of factors have declined, and oil prices have dropped sharply, the outbreak has led to the destruction of Orangutan habitats.
Benjamin Futures, almost year-round year-end, declined by 18% this year, just like the year-on-year drop in 2017, and the prices are at low values over three years.
In every type of product, used by chocolate and fuel, the palm closes the price of nearly 2,000 tonnes per year, according to a Bloomberg survey this month. This value is compared to 2.044 rounds on Friday.
The fall predates more problems for Indonesian and Malaysian growers, because prices are above price levels. Kuala Lumpur plantation index fell by 9.4% this year and has been the biggest drop in 2014.
Here are some factors that reduce the price of the palm:
The rise in production and inventories and the lack of exports increased in the largest producers, Indonesia and Malaysia. The request is simply not enough to absorb the supply of supplies, said Ivy Ng, agricultural director of the region at CIMB Investment Bank in Bhd. Kuala Lumpur. Prices should be even more attractive to India, buyers of the world's largest importers, buyers who add the executive.
Doreb Mistry, a veteran analyst at Godrej International, has said the demand for biodiesel will be the most important pricing determination next year. Market participants require Indonesia B20 biodiesel mandate, mixing conventional fuel, 20% palm fertilizer to absorb supply. Malaysia plans its expected B10 mandate for transportation and other subsidy sectors, as of December 1, according to a letter sent to the oil companies by the Ministry of Primary Industries and according to Bloomberg News.
3. Commercial War
Palm oil did not exclude trade tensions between the United States and China, due to the exchange rate fluctuations, sharpened agricultural markets and trade flows, especially soybeans, molded to produce raw materials. The uncertainty about the commercial warfare has also turned the investors into nervous when they wait to see how plants' oils will be damaged. If the tensions continue and China has problems with US soybeans, buyers of the country may turn their palm oil on, said CIMB Ng.
And they are also Orangutans. The palm tree image was a negative line, resulting in a negative public that depicted tropical rainforests as floodplain and floodplain, and the efforts of governments and producers to improve the public image of palm oil. marketability
This month, Greenpeace activist was arrested after organizing a protest, a boat with a palm oil boat. The group has accused various participants of Mondelez International Inc's palm suppliers, destroying orangutan habitats in Indonesia after transmitting a viral Christmas commercial against British Tropical Oil. united