Palm Oil Heads for Two-Year Low as Stockpiles Advance

Palm oil, the world’s most-used cooking oil, is poised to tumble to a two-year low as inventories surge in Indonesia and Malaysia, the biggest producers, and a global economic slowdown curbs demand.

Futures in Malaysia, the global benchmark, may slump to between 2,600 ringgit ($852) and 2,700 ringgit a metric ton by December, Dorab Mistry, director at Godrej International Ltd. said in Mumbai today, lowering his forecast from the 2,900 ringgit to 3,300 ringgit made on Sept. 6. The commodity last traded below 2,600 ringgit in September 2010. With the recent sell-off, the probability of prices falling to 2,300 ringgit has risen to 50 percent from 20 percent in June, he said.