Weak biofuels demand, supplies to cap palm oil prices

BANGKOK (Reuters) - Malaysian palm oil prices are unlikely to rise much higher this year from current levels as domestic supplies are improving while the world's appetite for biofuels is showing signs of slowing on rising feedstock prices, a senior Malaysian government official said on Monday.

"I don't think palm oil will rise to new records this year. It will be a stable market for some time," Michael Dosim Lunjew, Secretary General at Malaysia's Ministry of Plantation Industries and Commodities, told Reuters in an interview on the sidelines of a bioenergy forum.

"The outlook for domestic supplies looks better than last year. At the same time, we might see increased restrictions and regulations on the use of biofuels because of surging food prices," he added.

(Reporting by Sambit Mohanty and Apornrath Phoonphongphiphat; Editing by Ben Tan)