Palm oil will drop “significantly” in the fourth quarter as output from new trees in Indonesia, the biggest grower, surpasses estimates and buyers switch to soybean oil, DBS Vickers Securities (Singapore) Pte. said.
Wilmar International Ltd., the world’s biggest palm-oil processing company, fell the most in Singapore trading in more than three years after reporting quarterly profit that missed analysts’ estimates.
Palm-oil production in Malaysia, the second-biggest supplier after Indonesia, probably gained the most in seven months in April, after recovering from seasonally low-output months, according to a Bloomberg survey.
Palm oil stockpiles in Malaysia, the second-largest supplier after Indonesia, slumped below 2 million tons in March for the first time in seven months as production fell from a year earlier. Futures climbed.