Tuesday 11 November 2008

CPO hasn’t bottomed out yet; may fall to MYR1,200/ton

Crude palm oil prices haven’t bottomed out so far and may fall to MYR1,200 a metric ton in case crude oil falls to $50 a barrel, Dorab Mistry, a London-based vegetable oils analyst, said Tuesday.

1 comment:

Guanyu said...

CPO hasn’t bottomed out yet; may fall to MYR1,200/ton

KUALA LUMPUR (Dow Jones) – Crude palm oil prices haven’t bottomed out so far and may fall to MYR1,200 a metric ton in case crude oil falls to $50 a barrel, Dorab Mistry, a London-based vegetable oils analyst, said Tuesday.

CPO prices may hover around MYR1,600/ton provided crude oil trades at $80/barrel, Mistry said addressing the China International Oils and Oilseed Conference in Guangzhou.

“Looking at the macro-economic situation, the outlook for demand and excellent weather worldwide, it is premature to talk of a bottoming out (of prices),” Mistry said.

The benchmark January contract on Malaysia’s derivatives exchange is currently trading around MYR1,600/ton.

“The MYR1,600 can’t be said to be a bottoming price. In a historical perspective, this price is almost mid-range.”

He said growth in demand for vegetable oils will be affected amid the current economic turmoil.

Mistry said soyoil prices could fall to $500/ton, free-on-board. Soyoil is currently being offered around $745/ton.