Palm Oil Must Drop 6% in Weeks to Lure Buyers, Mistry Says

Palm oil, the world’s most-consumed cooking oil, must decline about 6 percent in the next few weeks to attract buyers and clear record inventories, according to Dorab Mistry, director at Godrej International Ltd.

Futures on the Malaysia Derivatives Exchange, the global benchmark, need to drop to 2,200 ringgit ($719) a metric ton for the third delivery month, Mistry told a conference in Guangzhou, China today, reiterating a forecast on Oct. 16. Prices last fell below that level in November 2009. Global vegetable oil stockpiles are at a record and reserves of palm and lauric oils will keep expanding until December, he said.