14/03/2012 (Bernama) - Crude palm oil (CPO) prices are expected to hover between RM3,000 and RM3,500 per tonne this month following the lower CPO production in February, according to research firms.

In a research note Tuesday, JF Apex Securities Bhd said the lower CPO production is likely to support its price this month.

The palm oil statistics for February 2012 released by Malaysian Palm Oil Board (MPOB) yesterday showed that CPO production eased 7.93 per cent against January 2012 but grew 8.3 per cent year-on-year.

"The CPO production has eased for four consecutive months which is beyond our expectation. We believe the decline was due to the lag effect of heavy rainfall in the second half of last year," it said.

The industry consultants' projection for CPO price for 2012, at a range of RM3,000 to RM3,450 per tonne, is in line with the company's expectations, JF Apex added.

-- BERNAMA