Palm Oil Set for Bear Market on Record Output, Mistry Says
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Palm oil will probably tumble into a bear market next year as monthly output in Malaysia and Indonesia surges to records, compounding the impact of the biggest ever stockpiles, according to Godrej International Ltd.
Prices will drop below 2,200 ringgit ($723) a metric ton in August or earlier after trading between 2,300 ringgit and 2,600 ringgit between now and February, Dorab Mistry, director at Godrej, told a conference, giving his first outlook for 2013. The most-active contract closed at 2,370 ringgit on the Malaysia Derivatives Exchange today, after touching a three-year low of 2,220 ringgit on Nov. 12.