Veteran Trader Sees Palm Hitting Three-Year High on Biofuel Push

Palm oil prices may surge to a three-year high of 5,500 ringgit ($1,332) a ton in the first quarter of next year if global supplies are squeezed by rising use in biofuels, according to veteran trader Dorab Mistry.

That price level is possible “if Indonesia continues to seize plantations and talks about implementing B50”, the director of Godrej International Ltd. said on Friday in slides prepared for an industry conference in Bali. He was referring to the government’s recent takeover of farms deemed to be operating illegally, and the proposed expansion of the country’s biodiesel mandate.