Palm oil prices have risen as stronger edible oil markets, higher crude prices and a weaker Malaysian ringgit support demand.
Palm oil sits across food, fuel and currency exposure. When rival oils such as soyoil rise, buyers may look again at palm oil as an alternative. That can lift demand and support prices across the wider edible oils market.
Higher oil prices can make biodiesel more attractive, which may increase demand for vegetable oils used in fuel blending. This gives palm oil producers a link to energy markets as well as food markets.
A weaker ringgit can make Malaysian palm oil cheaper for overseas buyers using dollars. That can help exports and support prices, even when local market conditions are tight.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
