NUSA DUA (Bali): Malaysian crude palm oil (CPO) prices may rise 13.6 per cent to US$836 (US$1 = RM3.38) a tonne from current levels in the first half of next year as global vegetable oil supplies will not meet demand, a top analyst said yesterday.
Benchmark Malaysian palm oil prices will gain US$80-US$100 a tonne next year, driven by stronger demand for palm oil as sun oil and soyaoil output “cannot be increased sufficiently”, said Thomas Mielke of Hamburg-based Oil World.
“Prices (palm oil and soyaoil) will be higher in January-June under the lead of sun oil,” Mielke said at an industry conference. “Demand from the food and biodiesel sector has been growing.”
A shift in demand for palm oil will run down stocks in top producers Malaysia and Indonesia, possibly narrowing the discount that palm oil has with Argentine soyaoil in January to June next year, Mielke said. – Reuters
Source : Business Times
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