Palm oil may touch RM4,400 on tight supplies, Mistry says
(Sept 25): Palm oil futures will stay strong at least until March on an increase in export levies by top grower Indonesia, with supplies seen tight during the first two months of 2022, according to veteran trader Dorab Mistry.
The most-used vegetable oil is expected to trade between RM4,000 to RM4,400 per ton during the October-February period, before slightly dropping in March, Mistry, director at Godrej International Ltd, said at the Globoil conference on Saturday. Futures have averaged RM3,908 so far this year, according to data compiled by Bloomberg.
Higher benchmark prices may potentially curb purchases by top importer India in the coming months as the festive-season buying by the South Asian nation will almost be over by next month. Malaysian stockpiles may swell further going forward, after surging 25% in August from a month earlier.