Palm oil prices are expected to fall more in the
third quarter and lure more price-sensitive buyers away from competing soyoil,
an industry executive said Friday.
"[Supply] fundamentals for palm oil aren't looking good...prices have the
potential to fall more this quarter," Pakistan Edible Oil Refiners Association
Vice Chairman Rasheed Janmohammad told Dow Jones Newswires from Karachi.
Palm oil on Malaysia's derivatives exchange has lost 21% since the beginning
of the year and may fall to MYR2,950 a metric ton in the July-September period
as stock levels rise, he said. "The discount between refined palm olein and
crude soyoil from South America could widen to $200/ton."
Refined palm olein for August shipment to Pakistan was last offered at
$1,130/ton, making it $165/ton cheaper than crude soyoil from South America that
was last offered at $1,295/ton.
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.
com