Palm oil steadied near the lowest level in a week as investors weighed the outlook for
lower demand during winter against concerns over tight supply, as Indonesia and
Malaysia struggle with production. The tropical oil is heading for its first weekly decline
since mid-October after retreating from a two-year high on Monday. Demand for palm oil
typically eases over winter because it tends to solidify in colder temperatures, prompting
buyers to seek other substitutes. Investors are also watching the outcome of the
European Union’s landmark law to tackle deforestation, with the assembly on Thursday
endorsing amendments to soften the regulation, which are in addition to a proposed
delay. (Source: Bloomberg)
