MARKET DEVELOPMENT
‘Right Time to Invest in Palm Oil Derivatives’
‘Right Time to Invest in Palm Oil Derivatives’
21/12/2013 (New Straits Times) - Now is the right time to invest in palm oil derivative products and stocks due to their upside potential, says a futures broker.
Crude palm oil (CPO) prices are currently hovering at around RM2,300 a tonne, compared with above RM3,000 a tonne last year.
IF Derivatives Sdn Bhd founder and chief executive officer Chris Loh said palm oil derivative products and shares of plantation companies are currently not doing very well but he expects that to change.
“Palm oil prices have been hovering at the RM2,200-RM2,300 a tonne level for the past year but they are set to rebound next year due to strong factors, such as demand that outpaces
supply and rising global population.
“CPO prices in the next year can reach RM3,000 a tonne and go as high as RM4,000 a tonne. It is unlikely to fall below RM2,000 as our economy is not (doing) that bad. Now is the time to buy palm oil derivatives,” Loh said in an interview, here, recently.
IF Derivatives is a licensed futures broker and one of 10 active trading members on Bursa Malaysia Derivatives Bhd.
On another note, Loh said IF Futures will go all out to educate the public on derivatives investing, in an effort to draw more investors to the derivatives market.
“We are going all out to educate the public because in Malaysia, only 0.1 per cent of the country’s investors invest in derivatives products, compared with more than 30 per cent in South Korea and 10 per cent in Thailand,” said Loh, who has over 20 years of brokerage experience.
“Derivatives must complement other investments as the world has had three economic crashes in 1990, 1997 and 2009. When the market crashes, you can’t do much but wait for it to be out (from the situation).
For example, he said, during the 1997 Asian crisis, investors could have hedged their investment positions by buying palm oil derivatives.
Crude palm oil (CPO) prices are currently hovering at around RM2,300 a tonne, compared with above RM3,000 a tonne last year.
IF Derivatives Sdn Bhd founder and chief executive officer Chris Loh said palm oil derivative products and shares of plantation companies are currently not doing very well but he expects that to change.
“Palm oil prices have been hovering at the RM2,200-RM2,300 a tonne level for the past year but they are set to rebound next year due to strong factors, such as demand that outpaces
supply and rising global population.
“CPO prices in the next year can reach RM3,000 a tonne and go as high as RM4,000 a tonne. It is unlikely to fall below RM2,000 as our economy is not (doing) that bad. Now is the time to buy palm oil derivatives,” Loh said in an interview, here, recently.
IF Derivatives is a licensed futures broker and one of 10 active trading members on Bursa Malaysia Derivatives Bhd.
On another note, Loh said IF Futures will go all out to educate the public on derivatives investing, in an effort to draw more investors to the derivatives market.
“We are going all out to educate the public because in Malaysia, only 0.1 per cent of the country’s investors invest in derivatives products, compared with more than 30 per cent in South Korea and 10 per cent in Thailand,” said Loh, who has over 20 years of brokerage experience.
“Derivatives must complement other investments as the world has had three economic crashes in 1990, 1997 and 2009. When the market crashes, you can’t do much but wait for it to be out (from the situation).
For example, he said, during the 1997 Asian crisis, investors could have hedged their investment positions by buying palm oil derivatives.