HLG's Expectation For CPO Prices

On the FinancialEdge Daily. HLG Research expects CPO prices at RM1,900-RM2,500 per tonne

• HLG Research expects CPO prices at RM1,900-RM2,500 per tonne
  Written by Financial Daily
  Wednesday, 21 October 2009 10:51
  
  KUALA LUMPUR: HLG Research expects palm oil prices to trade between RM1,900 and RM2,500 per tonne in the next couple of months due to increasing fresh fruit bunch (FFB) production as palm trees enter into peak production season, exports growth slow before picking up towards year-end due to the lack of festive season between now and year-end, and speculation in the commodities market.
  
  For exposure to the PLANTATION [] sector, the research house likes pure-play planters such as Genting Plantations Bhd (16 times FY10 PE, net cash of RM0.24/share) and UNITED MALACCA BHD [] (17 times FY10E PE, net cash of RM2.52/share, implied CPO of RM1,900 per tonne).
  
  HLG Research said the benchmark third month CPO futures rose to its highest level in two weeks on Monday.
  
  CPO futures were down yesterday, with the most active January contract closing RM17 lower at RM2,180 per tonne, compared to the day before. The fall is said to follow crude oil, which traded sideways after reaching a one-year high above US$80 (RM268.80) per barrel.
  
  Palm oil exports increased 1.8% in the first 20 days of October to 812,095 tonnes from 797,929 tonnes over the same period in September, according to independent cargo surveyor Intertek.
  
  
  This article appeared in The Edge Financial Daily, October 21, 2009.

IF i am a reader and IF i am looking for some guidance on what to expect for crude palm oil prices, then this article is simply not up to my expectations.

A price range between rm 1900.00 to rm 2500.00 for the next couple of months is simply too wide.

Some would be quick to point out that one could get a similar price range if one refers to recent months trading range.

Rather lacking, don't you think so?