In the season of October/September 2013/2014 world exports of palm oil showed a sharp decline of 1.2 million tonnes from a year earlier to 42.8 million tonnes. This was quite unusual and followed with an uninterrupted year-to-year increases in the past 15 seasons with an average annual growth of 2.2 million tonnes. One of the reasons is to be seen in the below-average growth in world palm oil supplies in 2013/2014 and another in above-average growth of production of other vegetable oils worldwide. Also, palm oil prices rallied sizably in January/March 2014, triggering responses of consumers, many of them applied a more reserved buying policy and reduced palm oil stocks. World consumption of palm oil increased by only 1.9 million tonnes from a year earlier in October/September 2013/2014, which was less than half of the growth registered in the preceding 12 months and also below the average annual growth of 2.8 million tonnes in the preceding 10 years.
Keywords: MPOB PUBLICATIONS, MARKET DEVELOPMENT, PALM OIL INDUSTRY, PRICE FORECASTS, SUPPLY & DEMAND
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