09/08/2011 (Bernama) - MIDF Research is revising downward its average crude palm oil (CPO) price forecast for 2011 by -5.8 per cent from RM3,400 per tonne to RM3,200 per tonne.

This is mainly due to the uncertainty in global economic conditions and an expectation of higher CPO production, it said in a research note today.

The price is projected to remain at the RM3,000 per tonne level, at least for the remaining third quarter of 2011, MIDF Research said.

The research firm also said, the price is supported by stable demand for the coming festive seasons, as well as the widening in the discount of CPO price to soybean price.

Higher production during the CPO peak season in October and November will result in the price for the fourth quarter of this year, falling to an expected RM2,800 per tonne.

At the new CPO price, MIDF Research is assuming a downtrend in CPO price for the rest of the year with a potential decline of RM2,800 per tonne in the second half of 2011.

It is also reducing its CPO price forecast for 2012 by -10 per cent from RM3,000 per tonne to RM2,700 per tonne.