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Palm Oil Seen Climbing 7.8% to Year High as Inventories Drop

Palm oil may advance 7.8 percent by mid-April to the highest level in a year as cooking-oil demand outstrips supply, according to TransGraph Consulting Pvt. Chairman Nagaraj Meda, who has forecast prices for 13 years.

Stockpiles of soybeans, crushed to make a substitute oil, will decline after dry weather hurt crops in Brazil and Argentina, said Meda, who’s also managing director of Hyderabad, India-based TransGraph, an industry adviser. Palm oil may climb to 3,500 ringgit ($1,159) from 3,246 ringgit now, before sliding to 2,800 ringgit after July as prospects for the U.S. soybean harvest become clearer, he said.