in the second half of this year, a leading analyst said yesterday.
Palm olein now trades at a US$70 (RM210) premium to a tonne of
Argentine soyaoil, triggering concerns that demand will slow and weigh
on benchmark palm oil futures that is set to post its worst monthly
loss in February in more than a year.
Thomas Mielke, editor
of Hamburg-based Oil World, said the fading La Nina weather condition
in coming weeks will aid the recovery in Malaysian and Indonesian
output that has been curbed by heavy rains and floods in early 2011.
The same can be said for the Argentine soya crop that has now
experienced favourable rains after a prolonged dry spell owing to the
“A discount will emerge soon. Palm oil
will then further widen the gap as production yields will recover,”
Mielke said ahead of the Bursa Malaysia Palm Oil Conference on March
7-9. – Reuters
Source : Business Times