14/11/2008 (The Edge Daily), Kuala Lumpur - The price of palm oil may average 32% lower next year, partly because of oversupply and fading demand for biofuels, CLSA Asia-Pacific Markets said.

Palm oil will probably fetch RM1,000 ringgit a tonne in 2009, and RM1,250 in 2010, analysts at CLSA Asia-Pacific Markets in Kuala Lumpur said in a report today, slashing forecasts for the next two years by 46% and 32%, respectively.

Palm oil, down 58% in the past six months, yesterday closed at RM1,480 in Malaysia. Malaysia is the world's second-largest producer of the edible oil. -- Bloomberg