Palm oil, the world’s most-used cooking oil, has slumped this year as demand slowed from importers including China and the European Union, and stockpiles surged because of a seasonal increase in production.
Futures in Malaysia, the global benchmark, may tumble to 2,600 ringgit ($852) a metric ton by December, according to the median estimate in a Bloomberg survey of 11 analysts and importers who attended an industry conference in Mumbai yesterday. That would extend this year’s loss to 18 percent, the biggest decline since 2008, after a 16 percent retreat last year to 3,175 ringgit.
Demand for palm oil in particular, and for vegetable oils in general has been softer than expected in 2012. Demand was hurt by slower growth in the production of biofuels from vegetable oils and a slowdown in economic growth in the developing countries amid high prices.