Rival oils, palm and soy, have been locked in a price duel in recent months. That’s prompted buyers to switch cargoes as spreads and supplies fluctuate. Palm oil is usually the cheapest edible oil and the default choice for India’s refiners and food makers, but that advantage has eroded at times, sending buyers towards South American soy oil when the gap narrows.
(Feb 9): Palm oil may drop below RM4,000 (US$1,017) a tonne by April as it competes with a flood of South American soy oil in price-sensitive markets like India, according to veteran trader, Dorab Mistry.
Palm oil will have to become cheaper to attract demand, especially from India, Mistry, a director at Godrej International Ltd said in an interview on Monday.
