It was just on Tuesday that famed expert, Dorab Mistry called that CPO could go as low as MYR 1200.00/ton. (Do note that it was just last month that Dorab Mistry Reckons That CPO May Have To Fall To MYR1,600 To Boost Demand )
- DJ CPO Hasn't Bottomed Out Yet; May Fall To MYR1,200/Ton-Analyst
KUALA LUMPUR (Dow Jones)--Crude palm oil prices haven't bottomed out so far and may fall to MYR1,200 a metric ton incase 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.
- CLSA sees palm oil at RM1,000 in 2009
Published: 2008/11/14
THE price of palm oil may average 32 per cent lower next year, partly because of oversupply and fading demand for biofuels, CLSA Asia-Pacific Markets said.
Palm oil will probably fetch RM1,000 (US$278) a ton in 2009, and RM1,250 in 2010, analysts at CLSA Asia-Pacific Markets in Kuala Lumpur said in a report today, slashing forecasts for the next two years by 46 per cent and 32 per cent, respectively.
Palm oil, down 58 per cent in the past six months, yesterday closed at RM1,480 in Malaysia. Malaysia is the world’s second-largest producer of the edible oil. - Bloomberg
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1 comments:
his prediction lower to RM 1200 is because he think that the CPO price is highly influenced by crude oil (because of biofuel). So, when crude oil price down,he revised his forecast. Anyway, i believe CPO price will stay firm above RM 1200 for the short term because below that price will make some planter at lost which will reduce production and encourage replanting for old tree.
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