Palm Oil May Drop Below 4,000 Ringgit on Soy Oil Supply Gain

Palm oil may drop below 4,000 ringgit a ton 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.

The tropical 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. Palm futures traded at an average 4,213 ringgit ($1,072) per ton over the past year and were at 4,155 ringgit a ton in Kuala Lumpur on Tuesday.