KUALA LUMPUR: The Malaysia Palm Oil Council (MPOC) expects crude palm oil (CPO) price for this year to trade between RM2,500 and RM3,200 a tonne.
MPOC chief executive officer Tan Sri Dr Yusof Basiron said on Tuesday palm oil prices were affected by a temporary oversupply in production and suggested a supply rationalisation.
“We would need to build more tanks and ships to cater for the peak production months as well as more multi-feedstocks biodiesel plants to remove excess supply from the market, which I suggest this issue must be addressed both by Malaysia and Indonesia,” he said.
He was presenting his paper on “Market Challenges and Opportunities for Pam Oil in 2013”.
“Planters have to control the production to ensure to give a higher value on the commodity,” he added.
Yusof estimated CPO stocks could decline to two million tonnes this year as the CPO production was showing a decreasing trend. He said CPO production was almost 1,500 tonnes per month.
Malaysia recorded the highest CPO stockpile in December last year at 2.63 million tonnes and 2.58 million tonnes in January.
Source : The Star
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