Rising Malaysia Reserves to Deepen Palm’s Discount to Soyoil
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Palm’s discount to soybean oil, which reached the biggest in four years this month, is poised to widen as output in Malaysia climbs, boosting inventories in the second-largest grower. The tropical oil fell to the lowest level since October 2010.
“Stock levels would climb because it’s peak-production season,” said Hoe Lee Leng, an analyst at RHB Capital Bhd., who’s tracked the commodity for more than a decade. “The discount could widen a little bit more before it narrows” after output crests, she said, without giving a forecast.