Palm oil may extend a rally as dry weather in the main growing regions in Southeast Asia spurs speculation of lower output growth just as biodiesel demand expands, according to hedge fund manager Michael Coleman.
Palm, the world’s most-consumed edible oil, will see prices influenced by a potential El Nino weather event and increased biodiesel demand from Indonesia, according to Dorab Mistry, director at Godrej International Ltd.
The drought parching Singapore and swaths of Malaysia and Indonesia threatens to raise food prices, slow economic growth and disrupt water supply in the region, home to the world’s oldest tropical rain forests.
A jump in palm oil consumption for biodiesel in Indonesia, the world’s biggest supplier, will probably mean that shipments fail to increase this year for the first time since 2010 even as production climbs to a record.
Newport Beach, California, where four ranking lifeguards earned more than the town’s $109,677 median household income in 2012, may partially disband its municipal ocean rescue to deal with rising pension costs.
Michael Coleman , who co-manages the $1.3 billion Merchant Commodity Fund , and his partner Doug King have bought a stake in a Singapore-based rubber trader, which had sales of about $1 billion last year.