# Palm oil price rally not sustainable - analysts Fry, Mistry | Financial Post

> 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.

- Date: 2020-07-24 · published 2020-07-24T12:00:00.000Z
- Category: market · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/52200-palm-oil-price-rally-not-sustainable-analysts-fry-mistry-financial-post
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

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.

## Read by commodity

- WTI: neutral
- BRENT: neutral
- PALMOIL: bearish ▼

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/palm-oil-price-rally-not-sustainable-analysts-fry-mistry

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.