MARKET DEVELOPMENT
Malaysia Sime Darby Sees Palm Oil Prices at 1,900-2,200 Rgt in Next 4 Months
Malaysia Sime Darby Sees Palm Oil Prices at 1,900-2,200 Rgt in Next 4 Months
29/08/2014 (Reuters) - Sime Darby Bhd, the world's top oil palm planter by landbank size, sees average palm oil prices at 1,900-2,200 ringgit ($601.9-$696.9) a tonne for the remaining part of 2014, the Malaysian group's CEO said on Friday.
That was below an earlier forecast of 2,500 ringgit given in May.
Palm oil could trade at 1,900-2,200 ringgit a tonne in the next four months due to forecasts of bumper soybean crops in the United States, lagging biodiesel uptake and the rise in palm oil stocks in both Malaysia and Indonesia, Sime Darby Group CEO and President Mohd Bakke Salleh said. The CEO said initial fears of the crop damaging El Nino weather phenomenon had also subsided.
Benchmark Malaysian palm prices have slumped nearly 26 percent so far this year to languish at over five-year lows, an were trading at 1,968 ringgit on Friday.
Sime Darby, the plantations-to-motoring conglomerate, posted a 9 percent fall in fourth-quarter net profit as adverse weather led to a drop in palm fruit output, hitting sales.
($1 = 3.155 Malaysian Ringgit)
That was below an earlier forecast of 2,500 ringgit given in May.
Palm oil could trade at 1,900-2,200 ringgit a tonne in the next four months due to forecasts of bumper soybean crops in the United States, lagging biodiesel uptake and the rise in palm oil stocks in both Malaysia and Indonesia, Sime Darby Group CEO and President Mohd Bakke Salleh said. The CEO said initial fears of the crop damaging El Nino weather phenomenon had also subsided.
Benchmark Malaysian palm prices have slumped nearly 26 percent so far this year to languish at over five-year lows, an were trading at 1,968 ringgit on Friday.
Sime Darby, the plantations-to-motoring conglomerate, posted a 9 percent fall in fourth-quarter net profit as adverse weather led to a drop in palm fruit output, hitting sales.
($1 = 3.155 Malaysian Ringgit)