A top industry analyst said Malaysian palm oil futures could soon surpass a key psychological level of 3,000 ringgit as Asian buyers hunger for more of the vegetable oil at a time of low stocks and weak output, Reuters reports.
The head of vegetable oil purchasing at Indian conglomerate Godrej International, said orders from the world's top two buyers of vegetable oils -- China and India -- were set to jump as the world economy recovers.
Palm oil supplies are dwindling in top producers Indonesia and Malaysia due to weak output arising from lack of fertiliser use when prices fell dramatically last year, coupled with volatile weather and yield stress after months of good harvests.
In addition, the top two soy exporters, the United States and Brazil are experiencing low stocks after a supply shortfall in third largest soy producer Argentina, which may result in a powerful bull market emerging for vegetable oils, he said. (18 May 2009)