Palm oil rally seen fizzling out

Kuala Lumpur

A RALLY in the price of palm oil to three-month highs may run out of steam as buying ahead of the Muslim festival of Ramadan fades and markets brace for growing supply as the main harvest approaches, traders and analysts said.

With only around a week left of what is typically the strongest demand period for the tropical oil, analysts said that palm oil was unlikely to climb much beyond its current price of about RM2,300 (S$826) a tonne, with some saying that it might fall.