MARKET DEVELOPMENT
Rabobank Expects Neutral Year for Crude Palm Oil
Rabobank Expects Neutral Year for Crude Palm Oil
13/08/2014 (The Star) - Agriculture-based Rabobank expects it to be a fairly neutral year for crude palm oil (CPO), with prices expected to be higher in the fourth quarter at an average of RM2,500 per tonne compared to the third quarter's RM2,400.
Rabobank's head of food and agribusiness, research and advisory, Pawan Kumar said on Tuesday palm oil stocks were at moderate levels compared to other vegetable oils but faces pressure from subdued demand.
He is "fairly neutral" on CPO prices, expecting some upside in the fourth quarter compared to the third quarter.
In the first quarter of 2015, he expects CPO to average at RM2,600 and climb to RM2,700 in Q2 of 2015.
Every says prices have not been helped by the easy availability of other oil seeds and adds that oil palm players should be on the alert for the El Nino effect on their harvests over the next six months.
CPO prices have trended downwards this year, falling more than 18% year-to-date to RM2,177 per tonne as of Monday.
Rabobank's head of food and agribusiness, research and advisory, Pawan Kumar said on Tuesday palm oil stocks were at moderate levels compared to other vegetable oils but faces pressure from subdued demand.
He is "fairly neutral" on CPO prices, expecting some upside in the fourth quarter compared to the third quarter.
In the first quarter of 2015, he expects CPO to average at RM2,600 and climb to RM2,700 in Q2 of 2015.
Every says prices have not been helped by the easy availability of other oil seeds and adds that oil palm players should be on the alert for the El Nino effect on their harvests over the next six months.
CPO prices have trended downwards this year, falling more than 18% year-to-date to RM2,177 per tonne as of Monday.