Palm Oil Pricing Slated to Decrease

According to Bloomberg.com, palm oil, which is widely used in cosmetics, is slated drop in price for the first time in three years due to a boost in supply, thanks for good weather, and a decrease in demand. The median forecast in a Bloomberg survey of 10 analysts and importers, Malaysian prices are forecasted to decline to $879 per metric ton by the end of the year. This is good news for personal care and cosmetic suppliers, as the price of palm oil doubled in 2009 and 2010. However, 2011 saw a 23-percent decrease in demand.