CPO Price Outlook This Year Less Encouraging

KUALA LUMPUR, June 13 (Bernama) -- The outlook of local crude palm oil(CPO) prices this year was expected to be less encouraging in view of thehigher opening stocks and continued rise in production as forecast, saidMalaysian Palm Oil Board (MPOB).

CPO is forecast to rise to 11.2 million tonnes from 10.84 million tonnesin 2000, the board said in the Review of the Malaysian Oil Palm Industry2000.

"Unless export increases above 9.5 million tonnes to deplete the highearly of the year stock levels, the end of the year stock level isforecast to remain at 1.4 million tonnes and the local crude palm oilprices will fall further between RM850.00 to RM900.00 a tonne," Datuk DrYusof Basiron, its director general said in the review. Palm oil exportsalone was expected to reach 9.5 million tonnes, while the export value wasestimated to decrease to RM12.3 billion this year due to the lower exportprices.