India, China to push palm oil to a new bull phase early next year

Palm oil will begin a new bull phase early next year on the back of strong demand from biofuel makers and healthy purchases by India and China, according to veteran trader Dorab Mistry.

Crop-based fuels have become the fastest growing segment of global vegetable oil demand, Mistry, director at Godrej International Ltd., said at the Globoil conference in Mumbai on Friday. Subsidies given to the sector have also increased, he said.

The tropical oil is expected to trade between $3,700 ringgit ($884) and 4,500 ringgit a ton between now and June 2025, Mistry said. Purchases for the Chinese New Year and Ramadan in the January-March quarter will also be bullish for the market, he said.


Mistry’s comments could support benchmark palm oil futures, which have slipped about 10% from a peak in early April, and have been volatile due to a seasonal weakness in demand and high production.

Benchmark palm oil futures in Kuala Lumpur were at 3,931 ringgit in the afternoon session on Friday. Prices have been trading below 4,500 ringgit since the middle of 2022.

The outlook for soybean oil is bright as the commodity “will continue to benefit from brisk US biodiesel demand,” Mistry said.