Palm Oil Developments No.60 (June 2014) p5-9

Global Dependence on Palm Oil Likely to Increase in October/September 2014/2015

Thomas Mielke*

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.

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Author information:
* ISTA Mielke GmbH,
Langenberg 25,
21077 Hamburg, Germany.