26/05/2016 (Bernama) - Sime Darby Bhd is expecting crude palm oil (CPO) price to trade between RM2,500 and RM2,700 per tonne in the next three months due to slower growth in production, said its President and Group Chief Executive Tan Sri Mohd Bakke Salleh.

"Because of the El Nino phenomenon and the prolonged drought, production was affected and consequently we expect the price to move up.

"However, the CPO price may not go further up as there are other competing oils such as soybean which are very competitive coming from Brazil and Argentina," he told a media briefing here, Wednesday.

Mohd Bakke added the business sentiment in consuming countries like China and India, that are going through consolidation and have slowed down demand during the current economic challenges, might also dampen the CPO price.

The conglomerate's plantation division recorded a profit before tax and interest of RM91.9 million for the third quarter ended March 31, 2016, down 32 per cent from RM134.7 million in the same period a year ago.