Palm Favored by Ospraie Rising as Reserves Retreat: Commodities
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Palm oil is rebounding from a seven-month bear market after Malaysia, the second-biggest grower, cut export taxes to diminish record stockpiles.
Inventories will drop 16 percent to 2.2 million metric tons by March, the most since 2010, after tariffs were reduced to zero this month, according to the median of six analyst and trader estimates compiled by Bloomberg. Futures will rally 14 percent to 2,800 ringgit ($921) a ton in Kuala Lumpur by the end of this quarter, the median of 13 estimates shows.