NEW DELHI: The benchmark crude palm oil (CPO) futures in Malaysia are expected to rise to 2,800-3,000 ringgit per tonne by March, an influential industry analyst said on Tuesday.
“I believe CPO prices must rise very soon. CPO futures will trade between 2,800-3,000 ringgit by March 2010,” London-based Dorab Mistry, whose forecasts are keenly watched, said at an industry conference in the Indian capital city.
On Tuesday, the benchmark February contract on the Bursa Malaysia Derivatives Exchange closed at 2,521 ringgit per tonne, up 8 ringgit, or 0.32 percent.
Mistry said 2010 palm oil output in Malaysia, the world’s second-biggest producer of the cooking fat, could be lower than the 17.5 million expected in 2009, while global vegetable oil demand was expected to rise by 5.5 million tonnes.
“I believe production will be even less in 2010. The high cycle which started in September this year will end in April or July next year. I am pessimistic about production in 2010,” Mistry said.
He said 2010 palm oil output in Indonesia, the world’s biggest palm oil producer, was likely to rise by 1.0-1.5 million tonnes.
Mistry in September said Indonesia’s palm oil output in 2009 was likely to rise to 21.5 million tonnes from about 20 million tonnes in the previous year. – REUTERS Source: Business Times]]>