Palm oil price can hit RM2,800'

KUALA LUMPUR: IOI Corp Bhd executive chairman Tan Sri Lee Shin Cheng is hopeful palm oil would trade as high as RM2,800 per tonne by the end of this quarter.
Palm oil price had been in the doldrums in 2012 and much of 2013. Towards the last two months, however, it began to climb to above RM2,500 per tonne.

It did rise to a high of RM2,700 a tonne in the first week of December 2013 but fell to just below RM2,500 two days ago.

Yesterday, the third month benchmark crude palm oil (CPO) futures on the Malaysian Derivatives Exchange traded RM31 higher to close at RM2,524 per tonne.

Lee does not expect prices to drop further. "We are now entering the low-crop period and heavy rainfall had somewhat hampered harvesting activities in some areas. I believe the CPO prices can go up some more," he said.

"Demand for palm oil is picking up again, especially from traditional markets. Palm oil is the most popular vegetable oil in the world. It is nutritious and affordable," he said.

As one of the more efficient planters and top five palm oil producers in the region, IOI's price forecast is keenly watched by vegetable oil traders and analysts around the world

Read more: 'Palm oil price can hit RM2,800' http://www.btimes.com.my/articles/15cpo/Article/#ixzz2qbbabIOt