Palm oil prices have dropped, putting them at the lowest level since the beginning of the year, according to Bloomberg.
However, a rebound in global production could be set to ease the pressure on supplies and prices.
"We consider it likely that world production of palm oil will increase significantly in calendar year 2011, primarily from April or May onward," researcher Oil World told the news provider in an emailed report.
"It is unclear at what time the market will start discounting this."
According to the US Department of Agriculture, quoted by Bloomberg, global output could rise by 6.9 per cent over the coming year.
If this happens, it could lead to a record level of production - 47.9 million metric tonnes.
Unilever, the world's biggest buyer of the commodity, recently called for buyers of palm oil to sign up for an initiative supporting sustainable production of the oil.
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