More losses in palm oil seen as output swells and demand falters

Kuala Lumpur

PALM oil, on the verge of sliding into a bear market, may extend losses as a seasonal increase in production threatens to expand stockpiles and demand falters, according to Godrej International Ltd's Dorab Mistry.

Demand from major customers for the oil, used in everything from instant noodles to biofuel, has been feeble, Mr Mistry said in an e-mail in response to questions from Bloomberg. The broader decline in commodity prices has also cut the purchasing capacity of buyers in Africa and West Asia, adding to slower palm oil demand, he said.