The Edge Daily - Oct 13 6:33 AM - Crude palm oil (CPO) prices are expectedto stay above RM1,400 per tonne for the next six months given the gooddemand for the commodity and low supply in the first quarter of next year,Golden Hope Plantation Bhd group chief executive Datuk Sabri Ahmad says.

Another reason, according to him, would be the expectation of a firmdemand for oleochemicals because of the soaring oil prices.

Demand for CPO in the last quarter of 2004 was expected to increase due tothe number of festivals, he told reporters after Mentakab Rubber Company(Malaya) Bhd's AGM in Kuala Lumpur on Oct 13, in which he is an executivedirector.

This would also bode well for the price of CPO as the last quarter of theyear is the high cropping months for fresh fruit bunches (FFB), he said.The FFB yield is expected to decline after this period due to the lowcropping months for the January-March period.

The high prices of oil have also boosted the sale of palm kernels asoleochemicals are a substitute for petroleum-based products, such aspowder detergent. This will boost the demand for the commodity in the nearfuture, he said.

Mentakab chairman Datuk Abdul Halim Ismail said the company expected goodrevenue growth next year following the injection of Lanchang Estate, whichresulted in a three-fold increase in its plantation land size from 700hato 2,200ha. Its FFB total crop is expected to jump to 49,305 tonnes from14,150 tonnes by next year with the acquisition.

The injection of Lanchang estate was to meet the minimum listingrequirement of Bursa Malaysia for a minimum paid-up capital of RM60million with 25% public shareholding spread.

Mentakab acquired Lanchang Estate from Chermang Development (Malaya) SdnBhd for RM55.5 million via the issue of 33 million shares at RM1.65 each.