Author Topic: Palm Oil May Top 3,000 Ringgit for Mistry If El Nino Occurs  (Read 1272 times)

0 Members and 1 Guest are viewing this topic.

Offline kelee877

  • Dignitary
  • ****
  • Posts: 968
  • Karma: 17
  • Gender: Female
  • Bugged out already
  • Country: Canada
  • Location: Northern Ontairo
Palm Oil May Top 3,000 Ringgit for Mistry If El Nino Occurs
« on: March 05, 2014, 04:16:44 AM »
Palm oil may extend an advance from the highest level since 2012 if an El Nino parches crops in Southeast Asia this year, according to Dorab Mistry, director at Godrej International Ltd.

Prices may approach 3,500 ringgit ($1,069) a metric ton should the event hurt production from late 2014, said Mistry, who’s traded vegetable oils for more than three decades. Futures would “cling” to 3,000 ringgit beyond June under that scenario, he said. If rains come as normal and the high production cycle starts from July, prices will trade from 2,600 ringgit to 2,900 ringgit from July to October, he said.

The prediction coincides with a rally in everything from corn to coffee and sugar as dry weather threatens crops in [/size]Brazil[/color], potentially stoking global food inflation. The surge in palm futures would weaken demand for the oil in biodiesel, said Mistry, who in November correctly forecast that futures would trade from 2,600 ringgit to 2,900 ringgit through March.
[/color]
[/color]“Production is under-performing and stocks are tight,” Mistry said in remarks prepared for the Palm and Lauric Oils Conference in Kuala Lumpur today. “In the event that an El Nino develops, I believe CPO futures will cling to 3,000 ringgit beyond June. Production is likely to be affected from late 2014 onwards and we may be staring 3,500 ringgit. We shall kill all discretionary biodiesel demand.



[/color]Dry Weather

[/color][/size][/font]
[/size]Dry weather in [/font]Malaysia and parts of Indonesia is already threatening to curb supply of palm oil just as demand in biodiesel increases. Michael Coleman, who helps manage the $143 million Merchant Commodity Fund in Singapore, said on Feb. 25 that prices may advance to 3,000 ringgit within four months as traders anticipate the impact of dry weather on production.

[/size]
El Nino can shrivel crops in Indonesia and Malaysia, which account for about 86 percent of global production. While inadequate rain generally hurts palm supplies nine to 18 months later, prices move in advance, according to Coleman.[/font][/size][/color][/color][/color]The event, which affects weather worldwide and can roil agricultural markets as farmers contend with drought or too much rain, may occur in the coming months, Australia’s Bureau of Meteorology, said on Feb. 25. There’s a 75 percent chance an El Nino will occur in late 2014, according to researchers Josef Ludescher and Armin Bunde, who published their prediction in the journal PNAS last month.[/color]Palm oil, used in everything from food to biofuels, surged to 2,868 ringgit today, the highest level since September 2012. Futures have rallied 33 percent from more than a three-year low of 2,137 ringgit in July and were at 2,845 ringgit at 4:12 p.m. in Kuala Lumpur.




http://www.bloomberg.com/news/2014-03-05/palm-extending-climb-to-highest-since-12-for-mistry-on-el-nino.html
« Last Edit: March 05, 2014, 04:19:27 AM by kelee877 »
http://prepareforfuture2.forumotion.com/

In loving memory of my son Chris April 12 1985-June 19 2007

Offline zeker

  • Pro Prepper
  • *****
  • Posts: 3519
  • Karma: 28
  • Country: Canada
  • Location: N Ont
Re: Palm Oil May Top 3,000 Ringgit for Mistry If El Nino Occurs
« Reply #1 on: March 05, 2014, 07:52:22 AM »
jeez kel.. Its too early for me to be drinking. I read that 3 times and still dont know what it said.
 

palm oil..? must have pretty dry hands....? wouldnt that make it slippery? o wait.. idea forming..... >:D
of all the things I,ve lost.. I miss my mind, the most

Offline Henry

  • Pro Preppers
  • VIP
  • *****
  • Posts: 437
  • Karma: 20
  • New Member
  • Country: canada
  • Location: northern ontario
Re: Palm Oil May Top 3,000 Ringgit for Mistry If El Nino Occurs
« Reply #2 on: March 05, 2014, 08:59:04 AM »
I do not use palm oil    way too slippery.
Henry