ID :
166810
Wed, 03/09/2011 - 12:15
Auther :
Shortlink :
https://oananews.org//node/166810
The shortlink copeid
CPO to reach us$1,333 this year, says analyst
KUALA LUMPUR, March 9 (Bernama) -- Crude palm oil (CPO) prices are expected to touch RM4,000 (US$1,333) this year on the back of increasing demand for biodiesel, said industry analyst, Dorab Mistry.
He said demand for biodiesel was expected to increase by at least 2.5 million tonnes this year due to the geo-political uncertainty in West Asia and North Africa.
"If the strifes and demonstrations continue for months, energy prices are expected to remain high and this will boost demand for biodiesel," he said at the Palm and Lauric Oils Conference and Exhibition 2011 here Wednesday.
Dorab was one of the panelists at the conference.
He said CPO prices currently were aligned to the energy prices which depended on the developing geo-political situation.
"Given the high energy prices, tight palm oil stocks and increasing demand, the CPO price is expected to reach new high in the next eight to 10 weeks.
"It is conceivable it may test the RM4,000 mark in the next few weeks," he said.
He said the prices would not fall below RM3,000 (US$1,000) this year unless there was a general financial meltdown and a market collapse.
On CPO production, he said, Malaysia's was expected to be at 17.3 million tonnes this year while Indonesia's would be 1.5 million tonnes higher than last year's to reach 24 million tonnes.
He said demand for biodiesel was expected to increase by at least 2.5 million tonnes this year due to the geo-political uncertainty in West Asia and North Africa.
"If the strifes and demonstrations continue for months, energy prices are expected to remain high and this will boost demand for biodiesel," he said at the Palm and Lauric Oils Conference and Exhibition 2011 here Wednesday.
Dorab was one of the panelists at the conference.
He said CPO prices currently were aligned to the energy prices which depended on the developing geo-political situation.
"Given the high energy prices, tight palm oil stocks and increasing demand, the CPO price is expected to reach new high in the next eight to 10 weeks.
"It is conceivable it may test the RM4,000 mark in the next few weeks," he said.
He said the prices would not fall below RM3,000 (US$1,000) this year unless there was a general financial meltdown and a market collapse.
On CPO production, he said, Malaysia's was expected to be at 17.3 million tonnes this year while Indonesia's would be 1.5 million tonnes higher than last year's to reach 24 million tonnes.
