Palm Oil Demand May Sag On EU Phaseout

Market uncertainties and slowing economies are clouding the outlook for global palm oil demand, Erwida Maulia reported for Nikkei Asia.

Photo Insert: The European Union (EU) has already started phasing out the use of palm oil over the mindless conversion of Indonesian and Malaysian forests into plantations manned by exploited foreign workers.

These issues arise as Indonesia sees “stable” prices in the coming months after Jakarta imposed a ban on the export of palm oil out of food security concerns even as prices zoomed.

The European Union (EU) has already started phasing out the use of palm oil over the mindless conversion of Indonesian and Malaysian forests into plantations manned by exploited foreign workers.

With scarce sunflower oil from Ukraine entering the market, traders made a killing as Moscow sent its forces into Kyiv. Prices are expected to decline next year after having hit record highs in the wake of Russia's invasion of Ukraine.

Some industry players and analysts who gathered at the Indonesia Palm Oil Conference on the resort island of Bali last week forecast that Malaysian palm oil futures for delivery in three months -- a global benchmark of the commodity -- to hover between 3,500 ringgit ($738) and 5,000 ringgit per ton through the first quarter of 2023.

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