Palm Oil Futures Edge Higher on Supply Concerns and Tighter Supplies

Palm oil futures in Malaysia have regained some strength and are hovering near MYR 4,900 per tonne. This upward movement is largely due to concerns over supply levels.

The recent weakness in palm oil prices has been offset by firmer soyoils on China's Dalian markets and expectations of tighter supplies.

Indonesia's B50 biodiesel mandate will divert more palm oil to domestic use, while the risk of El Niño could curb output in both Indonesia and Malaysia.