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2-year high: Palm oil prices
Palm oil prices are around two-year highs at $722 a tonne as output in Malaysia, a key market for the commodity, declined 2% in October.
Shares in UK-quoted producers Dekeloil (DKL:AIM) and REA Holdings (RE.) have both been boosted by the news while MP Evans (MPE) saw a takeover offer from Kuala Lumpur Kepong increased to 740p a share on 15 November.
Both that offer and a previous 640p bid have been rejected by MP Evans. While higher prices are a benefit to producers of palm oil this year’s crop has been hurt by drought. That may impact volumes. Labour shortages are also creating problems in Malaysia.