Palm oil shipments from Indonesia, the world’s biggest producer, probably advanced for the first time in four months in May on increasing demand for the Muslim fasting month of Ramadan. Prices climbed to a three-month high.
Palm oil inventories in Malaysia, the world’s second-largest producer, probably fell for a fifth month in May to the lowest level in almost a year, according to a Bloomberg survey. Futures climbed to a two-month high.
Palm oil may decline about 14 percent as output increases in Indonesia and Malaysia, rebuilding stockpiles in the world’s two largest producers, according to Dorab Mistry, director at Godrej International Ltd.
Palm oil climbed to the highest level in more than five weeks on speculation that an increase in demand before the Muslim fasting month of Ramadan may cut stockpiles in Malaysia, the second-largest producer.
Palm oil may gain 15 percent by the end of June, according to Godrej International Ltd.’s Dorab Mistry, restating a yearlong call for a rally to 4,000 ringgit ($1,303) a metric ton after prices dipped.
Palm-oil reserves in Indonesia, the largest producer, may total about 4 million metric tons, twice as much typically estimated, according to Godrej International Ltd., which forecast a rise in Malaysian stockpiles to a record.