Wednesday 25 December 2013

News: Palm Oil May Climb 15% for Mistry as Biodiesel Demand Increases

Dec. 23 (Bloomberg) -- Palm oil seen trading between 2,600 ringgit/t and 2,900 ringgit on Bursa Malaysia Derivatives, says Dorab Mistry, director at Godrej International Ltd. 
 * Futures may climb to 3,000 ringgit/t by March and not be sustained for long at that level, he says in   slides prepared for a National Commodity & Derivatives Exchange event in Mumbai. 
 * NOTE: Mistry maintained predictions made at conference in Indonesia on Nov. 29 
 * “I am not bearish on the vegetable oil complex,” says Mistry. “Palm production is coming down and stocks are also down. Food and bio diesel demand will be higher,” he says 
 * Price outlook assumes Brent at $95/bbl to $115, continued quantitative easing at lower levels and normal weather, he says 
 * Palm and soft oils may go sideways until mid-Jan., he says 
 * Without biodiesel, prices would collapse, he says 
 * Indonesia’s mandate for use of 3.1m tons palm biodiesel by Pertamina is game changer, he says 
 * Palm oil output in 2014 in Indonesia may be 30.5m tons vs 27.5m tons yr earlier, he says 
 * Production in Malaysia may be 19.5m to 19.7m tons vs 19.2m tons, he says 
 * Palm output in Indonesia in 2013 is 500,000t lower than 2012, with final quarter much lower yr on yr, he says 
 * Prices may drop in second half 2014 on strong production, with high cycle in Indonesia starting in May, he says * China may import 70m tons of soybeans, he says


To contact the reporter on this story:
Pratik Parija in New Delhi at +91-11-4179-2032 or
pparija@bloomberg.net