28/09/05 PETALING JAYA, Sept 28 (Bernama) -- Oils and fats expert, DrJames Fry has predicted higher crude palm oil (CPO) prices for firstquarter next year due to the increasing interest in biofuel.

He said the CPO price was estimated to end the year at RM1,320, but willstrengthen to RM1,480 by middle of next year.

There will be higher CPO prices next year as demand will be growing fasterthan supply partly because of biofuel. There would also be some tightnessin the market, he said on the sidelines of the four-day International PalmOil Congress (PIPOC) 2005 here Wednesday.

Dr Fry, who is managing director of British-based LMC International Ltd,said although there were parties claiming biofuel as the only `hype of themoment', biofuel had already influenced the price of the commodity.

Next crop year, growth in world oil output and demand will slow down. Theproduction will be slower than consumption. Total soy oil and palm oilstocks will fall, he added.

Fry said in the next few months, Indonesia's willingness to accept lowerprices than Malaysia would keep Malaysia's stocks fairly high.

The local CPO price ended yesterday at RM1,445 per tonne.

-- BERNAMA