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 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.
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 jumped to the highest close in more than 16 months as exports increased from Malaysia, the second-biggest producer, and as advancing stock markets boosted optimism over the economic recovery and commodity demand.
Dorab Mistry compared the palm-oil market in 1998 to the Titanic and correctly predicted a slump from then-record prices the next year. He’s now forecasting another retreat as weakening demand outweighs a decline in Malaysian production.
Palm oil inventories in Malaysia, the largest producer after Indonesia, probably contracted for a sixth month in June to the lowest level in a year, according to a Bloomberg survey of growers and analysts. Futures climbed.
Palm oil plunged the most in more than 15 months on concern that China’s plans to cool domestic prices by selling cooking-oil stockpiles will reduce demand from the world’s biggest user of the commodity.