WRAPUP 1-Shrinking global palm oil supplies, strong biodiesel demand to boost prices

Stagnating global palm oil production and higher biodiesel mandates are likely to curb supplies of the world's most used vegetable oil this year, setting the stage for further gains in prices, which are trading at their highest in seven months. Palm oil output in Indonesia and Malaysia, which account for a bulk of global production, is likely to either rise marginally in 2024 or decline from last year's level, as ageing plantations and a lack of expansion caps output, analysts told an industry conference in Kuala Lumpur on Wednesday. "Vegetable oil prices will be supported by the prospective global production deficit," leading industry analyst Thomas Mielke said.