26/2/06 (RedNova) - PALM oil traders are optimistic of the commodity's performance this year, putting the average price of crude palm oil (CPO) at RM1,500 a tonne against last year's RM1,394.

In 2004, the average CPO price was trading at a high average of RM1,610.

"This year, we're forecasting CPO to trade in the range of RM1,400 and RM1,600 per tonne, which is between last year's average of RM1,394 and 2004's RM1,610," Malaysian Palm Oil Promotion Council chief executive officer Tan Sri Dr Yusof Basiron said.

The average price forecast for 2006 came out of the globally- monitored Bursa Malaysia's Annual Palm and Lauric Oils Conference and Exhibition, which ended yesterday.

Yusof, who chaired the panel discussion, said historically, the conference's estimate of palm oil's average price has been quite accurate.

"The demand for palm oil is expected to be encouraging with the abolishing of palm oil import quota by China, trans-fat labelling in the US and increasing worldwide demand for biodiesel," Yusof said.