Skip to content
Subscriber Only

Palm Oil Heading for 20-Month Low as Slowdown Cuts Demand

Palm oil, used in everything from candy to biofuels, may tumble 9 percent to the lowest level in 20 months as a slowdown in China and Europe curbs demand, according to Dorab Mistry, director at Godrej International Ltd.

Futures may slump to as low as 2,700 ringgit ($848) a metric ton from 2,968 ringgit in the absence of fresh stimulus by the U.S. to revive growth, said Mistry, abandoning his forecast for prices to reach 4,000 ringgit. The most-active contract last traded below 2,700 ringgit in October 2010. Futures may rebound to 3,300 ringgit as the decline may stimulate demand, he said at a conference in Mumbai yesterday.