10 September 2008 15:14 [Source: ICIS news]
LONDON (ICIS news)--Palm oil methyl ester (PME) prices are being heard 10% lower for delivery one month forward rather than prompt in the European markets, said biodiesel traders on Wednesday.
Market sources said they did not expect PME prices to pick up before 2009 as demand was traditionally low at this time of year as the industry switched to cold-weather blends.
PME offers were heard in ?xml:namespace>
With shipping costs taken into account this was equivalent to between $985-1,015/tonne on a CIF (cost, insurance and freight) ARA (
The voyage from
Offers for PME for prompt delivery in northwest
Palm oil prices have fallen 48% from their record high in March of this year due to oversupply.
Market sources said that price stabilisation was unlikely at this time due to a predicted overhang of 5m tonnes of palm oil stocks in
“Biofuels are said to create a big demand for palm oil but, compared to food, biodiesel is very marginal as a market driver. The fact that one in 10 people in
Biodiesel accounts for around only 5% of palm oil demand.
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