Strongest El Nino in 20 years may hike palm oil price to highest since 2012

Kuala Lumpur

PALM oil may surge to the highest since 2012 as the strongest El Nino in almost two decades "ravages" production and squeezes inventories in the world's largest growers, according to Godrej International Ltd's Dorab Mistry.

Prices in Kuala Lumpur, the global benchmark for the world's most-used cooking oil, will jump to RM3,000 (S$1,005) a tonne as world supply trails demand, Mr Mistry said in remarks prepared for a conference on Wednesday. Futures last traded above the RM3,000 level in September 2012, and would be almost 20 per cent above Tuesday's close of RM2,528.