So far over the month, palm oil production in the country has risen by 5% to 1.33 mln tons, which is 10% ess than the average annual level for the current period. The decline is due to the flood in some of the plantations in February. There is shortage of labourers in the country, who would collect the harvest on time.

Over the month, palm oil demand from India, Pakistan nd the EU has remained high. Monthly export growth is 7%.

Palm oil price decline is expected over the next few months due to the growing soybean oil supply worldwide.

The EU issued a resolution which will restrict palm oil import. The EU is the second biggest market for Malaysia produce. 2.059 mln tons of palm oil from Malaysia were imported in the EU in 2016, 30% of which has been used for biodiesel production. These changes in the EU may affect sunflower oil consumption by pushing it up.