Higher palm oil prices seen due to slower global output growth

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KUALA LUMPUR (Sept 4): Palm oil prices are expected to be higher this year and next due to slower growth of global palm oil production anticipated, opined Thomas Mielke, executive director of Oil World.

Oil World is a research organisation that studies edible oils and biodiesel.

Speaking at the Palm Oil Industry Leadership Forum today, Mielke says palm oil production is likely to see the smallest growth in world production in five years as compared to other edible oils - soya, sunflower and rapeseed oils.

"If confirmed, it will result in higher prices of palm oil in 2014 and 2015," he told a room packed with industry players.

Mielke expects a below average growth in palm oil production for the next two years as supply of palm oil falls below average.