Palm oil price 2014 summary
Despite the obvious demand for the commodity, palm oil futures have been on a downward slope for the last five months.
Take a look at this monthly chart of the November futures contract to see what I mean. It’s now trading close to 12-month lows – after reaching an 18-month high in March.
2014 palm oil price
Also, a key factor driving palm oil consumption is the escalating demand for biofuels. And Indonesia’s biodiesel mandate was raised in August 2013 to a minimum 10% biofuel in diesel from the previous 3% to 10% range. The mandate was doubled to 20% for the power industry.
All of these developments point to increased palm oil prices in the immediate future.
