Palm prices to rise to 2,500 ringgit by March as output eases -Mistry
* Prices seen trading between 2,100-2,300 rgt over next few weeks
* Palm to rise to 2,500 ringgit per tonne by March 2015
* Indonesia, Malaysia output forecast lowered
* Palm stocks to peak in October and ease in early 2015
By Anuradha Raghu
KUALA LUMPUR, Oct 29 (Reuters) - Palm oil prices may have bottomed out and will likely trade between 2,100-2,300 ringgit per tonne ($641-$703) in the next few weeks before rising to 2,500 ringgit by March, as output weakens and stocks ease, leading analyst Dorab Mistry said.
Benchmark palm oil prices had plunged almost 28 percent over the first eight months this year as Malaysia's stocks of the tropical oil surged to a more than one-year top above 2 million tonnes, but a recovery in futures has set in since September amid signs of weaker output.
"Palm oil production is not performing to expectation and that is taking out some of the froth from production estimates, including my own," said Mistry, who had previously expected palm prices to hit a 5-1/2-year low of 1,900 ringgit on sluggish demand and higher output.
There are signs that palm oil output may have peaked in August this year, earlier than usual, while the delayed effects of dry weather indicate supply in top growers Indonesia and Malaysia may fall short of projections, Mistry said at a palm oil seminar in Kuala Lumpur. Continuación...