26/04/2010 (Gulf News), New Delhi - Palm oil may advance in the second half as dry weather caused by El Nino pares output in Malaysia and Indonesia, according to Godrej International.

The tropical commodity may rise as high as 3,200 ringgit (Dh3,687) a metric ton after June, Godrej director Dorab Mistry said.

El Nino, which damages crops, has started to weaken after reaching a peak in the third week of December, India's weather bureau reported. But its effects would be felt later in the year.

Palm oil will rise "substantially" after June to between 2,800 ringgit and 3200 ringgit, Mistry said.