Edible-Oil Prices to Increase on Demand, Supply Constraints (Bloomberg)

[chill_wind]

Edible-Oil Prices to Increase on Demand, Supply Constraints, Mistry Says
By Claire Leow -

Edible-oil prices may climb as growth in worldwide supply fails to keep pace with the rise in demand for a third year, with weather patterns hurting crops, according to Godrej International Ltd. Director Dorab Mistry.

Palm oil may gain to 3,300 ringgit ($1,072) per metric ton in the next few weeks and extend gains in 2011, according to remarks Mistry prepared for delivery at the DCE oilseed conference in Guangzhou, China today. The contract ended Nov. 4 at 3,191 ringgit. Soybean oil in Argentina, the largest exporter, may climb to $1,250 a ton by January, according to the remarks, raising Mistry’s forecast from $1,050.

Higher prices may add to costlier food, fanning inflation. World food prices climbed to the highest level in more than two years in October on more expensive meat, cereals, cooking oils and sugar, the United Nations’ Food and Agriculture Organization said. Mistry correctly predicted in March that palm oil would exceed 3,000 ringgit after June on lower yields.

“We have looming supply problems in wheat, in rice, in corn, in canola, in sun seed and, above all, in soybeans,” the text said. “We must therefore begin to give up too many thoughts of any meaningful decline in vegetable-oil prices during 2011.”

http://www.bloomberg.com/news/2010-11-07/edible-oil-prices-to-increase-on-demand-supply-constraints-mistry-says.html

[EC]

1. I hardly ever fry anything anyway

a bottle of oil could last me 2 yrs. if it doesn't get bad...in fact the last few bottles I had got so old I ended up throwing away half bottles...the only time I use it is in baking...and even then I usually use melted butter instead...