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Palm oil demand strong as top buyers China, India restock inventories

A narrow discount to a rival edible oil could limit demand growth moving forward: Analysts

Reuters  |  Kuala Lumpur 

Palm oil demand is expected to remain robust for the rest of the month as key consumer countries India and China rebuild low stock levels, bucking a seasonal trend in which shipments of the tropical oil typically taper off at year-end. A narrow discount to a rival edible oil, however, could limit demand growth moving forward, say traders and analysts, since buyers usually switch to more favoured soy oil when its price premium over palm narrows. The price differential or the spread between palm oil on the Bursa Malaysia Derivatives Exchange and Chicago Board of Trade soyoil has ...

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First Published: Mon, October 16 2017. 15:43 IST