KUALA LUMPUR: Palm oil is poised to gain 13 percent to 3,300 ringgit ($1,063) a metric ton by September as demand recovers in India and China, the world’s biggest importers, according to Hyderabad, India-based TransGraph Consulting Pvt.
Asian demand is expected to revive from September onward because of the onset of the festive season in India and China, Chairman Nagaraj Meda said in an e-mail interview. Palm oil futures in Malaysia last traded above 3,300 ringgit on May 11.
India marks the Diwali festival in November, while China has the Mid-Autumn festival in September and week-long National Day holidays in October. Palm oil fell for a third straight month in July on concern that lower shipments from Malaysia, the largest producer after Indonesia, may boost inventories.
Meda, who’s predicted prices for over a decade, forecast in March that palm oil would climb to 3,500 ringgit by mid-April, before falling to 2,800 ringgit. The price rose to close at 3,613 ringgit on April 10, then fell to 2,846 ringgit in June.
The October-delivery contract ended unchanged at 2,918 ringgit a ton on the Malaysia Derivatives Exchange yesterday. Futures have fallen 20 percent since reaching a 13-month high of 3,628 ringgit in April. (Bloomberg/msw)
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