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The international market

international oil analysts, Singapore Hui Avtar Sandu, senior product manager of futures yesterday in "the Tenth International Conference on oil," said that beginning in the first quarter of next year, palm oil price in the international market will continue to rebound in the current pattern.  

it is understood that, since August this year Malaysia palm oil prices hit since 1939 ringgit a ton of low, prices have continued on an upturn, yesterday Malaysia palm oil price index closed at 2372 ringgit a tonne.

corresponding to the international market is a large increase in domestic supply for the palm oil price effect continues to decline, palm oil price index yesterday closed at 4270 Yuan/ton.

"in four years, Malaysia palm oil prices are maintained at between 1500~4000 million/ton. "Avtar Sandu said the current price level is in the middle position. Supply market, Indonesia 2014 production was 31.5 million tons this year to maintain this production, Malaysia 2015 production to 21 million tons, the total supply of 52.5 million tons. High output led to rising inventory levels this year, Indonesian stocks at 3.5 million tons, Malaysia estimated nearly 3 million tons.  This is main factor of the palm oil price decline since the third quarter of this year.

at present, overseas supply markets high overall level of inventory domestic imported palm oil price continued to drop, palm oil in East China and South China was quoted yesterday at between 4230~4250 Yuan/ton, spot prices high ... In this regard, Avtar Sandu believes that Palm oil is that global supply may change.  

while, Indonesia and Malaysia supply capacity has since peak began fell, from data statistics in the began see two production will continued recession to 2016 a quarter; on the, China and India two a needs market imports constantly increased, because palm oil in edible oil market accounted for than constantly increased, currently has up to 55.9%; while Indonesia and Malaysia also in constantly increased biological diesel of using proportion, is expected to 2020 the proportion may increased to production of 30%.

for future price trends, Avtar Sandu believes that overall level of palm oil prices likely to continue recovery. Malaysia side since 1900 ringgit per tonne of palm oil has since rebounded to reach RM 2400/ton, suppressed prices are now the main factor for the high inventories. 2016 a quarter, with the market pick up, palm oil or destocking process step by step, the price is likely to impact to 3000 ringgit per tonne. In this procedure, the market needs to pay close attention to Palm oil inventory changes.