Malaysian palm oil prices could fall by about a fifth to 2,500 ringgit per tonne by third quarter of 2017 as production in top two producing countries is expected to rise, analyst James Fry said on Friday (03/02). (Antara Photo/Wahdi Septiawan)

Palm Oil Could Drop to 2,500 Ringgit as Output Jumps: Analyst Fry

BY :MAYANK BHARDWAJ

FEBRUARY 04, 2017

New Delhi. Malaysian palm oil prices could fall by about a fifth to 2,500 ringgit per tonne by third quarter of 2017 as production in top two producing countries is expected to rise, analyst James Fry said on Friday (03/02).

"Palm oil has to fall to capture market share from soyoil in markets like India," said Fry, chairman of commodities consultancy LMC International, in a speech at an industry conference.

Combined palm oil production of Indonesia and Malaysia could rise to 53 million tonnes in 2017 from 47 million tonnes a year ago, he said.

On Friday, benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange fell 0.55 percent to 3,055 ringgit ($690.24) a tonne.

US soyoil futures could fall by 1.5 cents per lb by third quarter of 2017, Fry said.

Reuters

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