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Palm oil could drop to 2,500 ringgit as output jumps - analyst Fry
February 3, 2017 / 10:57 AM / 10 months ago

Palm oil could drop to 2,500 ringgit as output jumps - analyst Fry

NEW DELHI, Feb 3 (Reuters) - 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.

“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.

U.S. soyoil futures could fall by 1.5 cents per lb by third quarter of 2017, Fry said. ($1 = 4.4260 ringgit) (Reporting by Mayank Bhardwaj; Editing by Amrutha Gayathri)

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