Palm oil prices could fall beneath 4,000 ringgit ($1,017) per metric ton within months as South American soy oil floods global markets. Veteran trader Dorab Mistry warns the edible oil faces stiff competition in price-sensitive regions like India, where buyers increasingly favor cheaper soybean alternatives.

Surging soy production in Brazil and Argentina has created an oversupply that's reshaping vegetable oil trade flows. Palm oil, typically the world's cheapest cooking oil, now struggles to maintain its cost advantage. This shift comes as major importers prioritize affordability amid persistent food inflation.

The pricing pressure reflects broader challenges for palm oil producers in Malaysia and Indonesia. With soybean processing accelerating in South America, analysts suggest palm oil may need to sell at steeper discounts to retain market share. The trend could squeeze margins for growers already grappling with higher labor and fertilizer costs.

Quick Fact: Palm oil may drop below 4,000 ringgit ($1,017) a ton by April.