Palm oil rally ending on record harvests (ext: BT)

PALM oil, used in everything from Twix candy to diesel fuel, may be poised to end its fastest rally in almost seven years and drop 25 per cent as the world’s biggest growers reap record harvests.
Indonesia and Malaysia, the top two producers, may boost world supplies by 5 per cent this year, according to government and producer estimates. India, the second-biggest buyer, will probably slow imports because of rising stockpiles, Citigroup Inc said.

“We expect palm oil to weaken,” said Sunaina Dhanuka, an analyst at Macquarie Group Ltd in Kuala Lumpur. “Production is likely to recover in coming months as weather conditions improve and exports are likely to slow down to exhaust the current stockpiles.” Dhanuka forecast an average price of RM1,850 a metric ton this year in a May 5 report.