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Palm oil prices fell to a six-week low after analyst Dorab Mistry forecast on Monday that Malaysia's 2019 palm oil output would rise to 20 million tonnes, up from earlier estimates of 19 to 19.5 million tonnes. The forecast raised expectations of higher stocks.
A higher production forecast raises expected palm oil supply and inventories, which pressures prices. Buyers of palm-based feed fats may face softer costs if the outlook holds.
thestar.com.myThe Star OnlineApr 30, 2019Not 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.
Directly attributes the fall to a six-week low after Mistry's higher Malaysian output forecast, which raised expectations of larger stocks.
Dorab Mistry's higher output forecast raised stock expectations and pushed prices to a six-week low at the start of the window.
Palm oil fell to a six-week low on Mistry's higher 2019 Malaysian output forecast, which raised stock expectations (supply/sentiment), but it was reported 2019-04-30, a day before the May 1 move, so it is likely a contributing factor via continued selling.
Mistry's higher output forecast raised expectations of larger stocks (supply), pressuring prices to a six-week low at the start of the window.
