MARKET DEVELOPMENT
High CPO prices not affecting palm oil exports
High CPO prices not affecting palm oil exports
19/7/07 (The Edge Daily) - The current bullish trend of crude palm oil (CPO) prices would not have a severe impact on Malaysia's palm oil exports, but may lead buyers to switch to other oils that are less expensive.
Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said at present, the price gap between palm oil and grape seed oil as well as soybean oil from Europe was closing.
However, the minister reiterated that higher CPO prices would not have much of an impact on the country's exports of palm oil, as there was still demand from China, Pakistan and India.
Speaking to reporters after presenting certificates of appreciation at the Malaysian International Commodity Conference and Showcase (MICCOS) 2007 here yesterday, Chin said the total volume of palm oil exports had risen over the last six months although there was a "slight" decrease in export volume to the European Union.
According to Hwang-DBS Vickers, palm oil exports in June fell by 17.6% month-on-month as the price premium of CPO to soybean oil has prompted buyers to deplete their inventory and switch to importing soybean oil and soya beans for crushing.
It expects CPO prices to trade between RM2,300 and RM2,500 for the remainder of the year.
On a related development concerning the introduction of EnvoDiesel biofuel, Chin said his ministry would have to review the results of the testing currently being conducted by Petronas, which is expected be released in a month's time.
EnvoDiesel, the domestic biofuel containing 5% palm olein and 95% petroleum diesel, was earlier scheduled to be introduced to the public in 2008.
"We have to review the results in terms of viability and technical problems (associated with the introduction). If we are 100% satisfied, we will go ahead. If not, we will not go ahead," he said.
It was earlier reported that the government would have to look cautiously at introducing EnvoDiesel due to the high CPO prices which are squeezing the margins of producers.
Meanwhile, MICCOS 2007, which was launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi on July 3, had attracted some 12,000 visitors and 1,500 participants for the conference and seminar.
Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said at present, the price gap between palm oil and grape seed oil as well as soybean oil from Europe was closing.
However, the minister reiterated that higher CPO prices would not have much of an impact on the country's exports of palm oil, as there was still demand from China, Pakistan and India.
Speaking to reporters after presenting certificates of appreciation at the Malaysian International Commodity Conference and Showcase (MICCOS) 2007 here yesterday, Chin said the total volume of palm oil exports had risen over the last six months although there was a "slight" decrease in export volume to the European Union.
According to Hwang-DBS Vickers, palm oil exports in June fell by 17.6% month-on-month as the price premium of CPO to soybean oil has prompted buyers to deplete their inventory and switch to importing soybean oil and soya beans for crushing.
It expects CPO prices to trade between RM2,300 and RM2,500 for the remainder of the year.
On a related development concerning the introduction of EnvoDiesel biofuel, Chin said his ministry would have to review the results of the testing currently being conducted by Petronas, which is expected be released in a month's time.
EnvoDiesel, the domestic biofuel containing 5% palm olein and 95% petroleum diesel, was earlier scheduled to be introduced to the public in 2008.
"We have to review the results in terms of viability and technical problems (associated with the introduction). If we are 100% satisfied, we will go ahead. If not, we will not go ahead," he said.
It was earlier reported that the government would have to look cautiously at introducing EnvoDiesel due to the high CPO prices which are squeezing the margins of producers.
Meanwhile, MICCOS 2007, which was launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi on July 3, had attracted some 12,000 visitors and 1,500 participants for the conference and seminar.