Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF)
oil prices are heading towards the RM3,400 mark by the second half of
next year on the back of a bullish run by vegetable oils in the global
CIMB Group (1023)
trader-cum-technical analyst G.M Teoh expects prices to touch RM3,400
per tonne in the first quarter of 2011, but cautioned that it is
important to have prices at RM2,800 per tonne in the short term.
He was speaking at the Second International Conference on the Future of Palm Oil Business 2010 in Kuala Lumpur yesterday.
Murali Krishna of TransGraph Consulting in India shared the optimistic
CPO outlook, saying he was bullish on the market in the next four to
“The rising share of palm oil in total vegetable oil trade is evident
with soya and rapeseed oils finding their way into bio-diesel usage in
the US and the EU respectively.”
The turning palm-centric
trends of the world vegetable oilseed and oil production trends were
also due to the varying oilseed output levels at the “mercy of the
erratic weather” and unsustainable production growth.
highlighted the growth potential of emerging markets and economic giants
like China and India which consume close to 64 per cent or 40 tonnes
of Asian vegetable consumption.
For instance, although the per
capita vegetable oil consumption has risen from 10 kgs to 14 kgs in
India and 18 kgs in China, the levels still stood lower than the world
Collating the production and exportable surplus
prospects across major vegetable oils vis a vis projected Asian demand,
the rise in share of Asian demand (India and China) from 53 per cent to
near 61 per cent by 2015 will create shortage elsewhere, implying
“higher prices to ration demand”. Source : Business Times
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