Loading…
Analysts James Fry and Dorab Mistry told Reuters that palm oil prices will fall by the fourth quarter due to higher output and inventories, dampening a rally that took prices to a five-month high. The benchmark contract gained 40% over 11 weeks on supply concerns in Indonesia and Malaysia and signs of rising demand.
Fry expects Malaysian peak stocks near 2.9 million tonnes, and Mistry says prices depend on crude oil staying elevated.
Palm oil is linked to crude through biofuel use, so a forecast Q4 stock build and weaker fundamentals point to lower palm prices and pressure on competing vegetable oils used in feed formulations.
financialpost.comReutersJul 24, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
