SIEM REAP: Malaysian crude palm oil futures are likely to rise to RM2,900 (US$844.5) per tonne by December on strong demand and lower output yields, leading industry analyst Thomas Mielke said today.
The price of the reddish-brown vegetable oil slid about 17 per cent this year and halved from a record high of RM4,486 hit in March, due to a knock-out combination of high stocks and news of defaults from key buyers India and China.
"In December the price should be around RM2,700 to RM2,900 for the third month contract. We expect increases in prices from here for several reasons," Thomas Mielke told reporters on the sidelines of a regional grains conference in Cambodia.
"Global demand for palm oil is going to pick up due to the very wide price discounts of palm oil relative to soyoil and other vegetable oils. Palm oil discounts are unusually high at the moment whatever locations you take," he said.
Mielke, head of German oilseeds research outfit Oil World, said the differential between the two products was as high as US$500 in the Rotterdam market at the end of August, with crude palm oil being quoted at US$835 per tonne and crude soyoil at US$1,338 per tonne.
Malaysian crude palm oil rose more than 1 per cent today as the price of crude oil bounced back from yesterday's low, and a weaker ringgit currency against the US dollar provided some support. - Reuters
The price of the reddish-brown vegetable oil slid about 17 per cent this year and halved from a record high of RM4,486 hit in March, due to a knock-out combination of high stocks and news of defaults from key buyers India and China.
"In December the price should be around RM2,700 to RM2,900 for the third month contract. We expect increases in prices from here for several reasons," Thomas Mielke told reporters on the sidelines of a regional grains conference in Cambodia.
"Global demand for palm oil is going to pick up due to the very wide price discounts of palm oil relative to soyoil and other vegetable oils. Palm oil discounts are unusually high at the moment whatever locations you take," he said.
Mielke, head of German oilseeds research outfit Oil World, said the differential between the two products was as high as US$500 in the Rotterdam market at the end of August, with crude palm oil being quoted at US$835 per tonne and crude soyoil at US$1,338 per tonne.
Malaysian crude palm oil rose more than 1 per cent today as the price of crude oil bounced back from yesterday's low, and a weaker ringgit currency against the US dollar provided some support. - Reuters
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