07/08/2014 (Borneo Post) - Research firm MIDF Amanah Investment Bank Bhd (MIDF Research) joins the slew of other agencies revising downwards its crude palm oil (CPO) outlook and forecasts for 2014, citing a lack of near-term catalysts to reverse its current downcycle.

The agency in its report yesterday observed that the price of CPO has recently retraced to RM2,300 per metric tonne (pmt) after displaying strong recovery signals and a steep climb in the first quarter of 2014 (1Q14).

“We believe that the current sluggish CPO price has been caused by the following meteorological and various supply-demand factors,” it said.

The expectation of a “strong” El Nino occurrence has eased, MIDF Research added, adding most climate models run by established climate centres have indicated that only a “weak” to “moderate” El Nino occurrence will develop between August to October.

“According to the Australian Bureau of Meteorology (ABM), despite the tropical Pacific Ocean being primed for an El Nino during m ch of the first half of 2014, the

atmospheric conditions have largely failed to respond to support the occurrence of a strong El Nino.

“In other words, data obtained from oceanic and atmospheric sources are not displaying corresponding signals indicating a strong El Nino occurrence.