HAMBURG: Global palm oil prices are likely to rise from December because of reduced stocks and sunflower oil prices are also set to increase, Hamburg-based oilseeds analysts Oil World forecast yesterday.
“Owing to declining stocks, palm oil prices are likely to appreciate from December onwards and may rally by US$80 to US$150 (a tonne) until March or April 2010,” it said.
The benchmark January palm oil contract on Bursa Malaysia Derivatives Exchange traded around US$639 (US$1 = RM3.42) a tonne on Monday.
Global October 2009/Sepember 2010 palm oil production is likely to rise 2.7 million tonnes on the season to a record 46.5 million tonnes, it said. But the likely higher output will be partly offset by lower season carry-in stocks.
Global palm oil stocks in October are estimated by Oil World to be 300,000 tonnes down on the year.
Palm and soyaoil would benefit from a generally bullish price outlook for other edible oils caused by declining prices and supplies it said.
“We are most bullish on the prices of sunflower seed and oil,” it said.
Following falls in sunflower seed crops in Argentina and other countries, it estimated sunflower oil prices could rise by US$120 to US$150 a tonne or more in the next three to eight months from their current level of around US$780 a tonne. – Reuters
Source: Business Times