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(KUALA LUMPUR) Benchmark Malaysian palm oil prices may hit RM2,400 (S$982.5) a tonne in the first quarter of 2010 due to a resurgent El Nino weather condition and as top Asian consumers resume buying, an analyst said yesterday.
The forecast of Dorab Mistry, head of vegetable oils purchasing with India's Godrej International, suggests that prices will climb 6.9 per cent from current levels that have been supported of late by strong crude oil, although high stocks in top producers Malaysia and Indonesia have limited gains.
An anticipated return of China and India to the market in early 2010 to aggressively restock after domestic oilseeds get used up may lift the market as well, he said. The top two buyers have now slowed purchases due in part to high port stocks.
'A lot will depend on the development of the new spell of El Nino,' Mr Mistry said. -- Reuters
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