Palm oil rallied to the highest level in more than 14 months on speculation that rains in Malaysia, the world’s second-largest producer, may hamper production of the tropical oil used in everything from food to fuel.
Palm oil imports by India, the world’s biggest buyer, probably climbed for the first time since June as traders rebuilt reserves from the lowest level in 21 months amid a delay in the domestic oilseed harvest.
Palm oil stockpiles in Malaysia probably jumped to the highest level in eight months as exports from the world’s second-biggest producer declined for the first time since May, a Bloomberg survey showed. Futures fell.
Thailand, once the world’s biggest rice exporter, will see a 17 percent jump in stockpiles to a record next year as it pursues a policy of buying from farmers at above market rates, said the Food & Agriculture Organization.