However, to date crude palm oil prices have failed to rally despite the impending El Nino weather conditions. According to a Wednesday report by OCBC Investment Research, the prognosis over palm oil demand to date remains soft; the recent contraction in palm oil demand in both EU and India are likely to persist for the rest of this year.
SINGAPORE (Sept 26): There is a 50-55% chance of an El Nino onset of fall this year from Sept to Nov with the probability increasing to 65-70% during winter 2018-19, say weather forecasters.
Should weather conditions turn severe, this could have a negative impact on total palm oil production subsequently and a decrease in overall supply would increase prices, if demand stays the same.
