Article: Palm Oil Pricing Stays Firm Because of Political Unrest.

PALM OIL PRICES remain strong in the wake of seasonal slowdowns in both demand and production as the industry hopes to recover from a volatile year caused by natural and political turbulence.

"Demand will be slack and not pick up again until early spring," says an industry source. "Coincidentally, it is the bottom of the production cycle, so these offsetting factors should keep prices steady."

A recovery is expected after the first half of next year as part of an overall improvement in output. USDA forecasts world palm oil production to be 17.7 million metric tons in 1998-99, up from 16.9 million metric tons during the previous year. The estimated 4 ...

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