Thursday 28 Mar 2024
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KUALA LUMPUR (March 7): The benchmark crude palm oil (CPO) price is expected to rise briefly to the RM2,600 per tonne level as stocks fall, but would then come down to near RM2,300 by July before Malaysian export taxes are restored, says industry analyst James Fry.

"At this point, the Bursa Malaysia derivative will stabilise, with export taxes set at zero, below RM2,250. Rising stock will hit free on board (FOB) CPO fairly quickly after June taking it below US$600, and below US$575 in the October to December quarter this year, unless Indonesia's CPO fund acts to step up its mandate," Fry said.

The LMC International Ltd chairman sees the average CPO price for 2018 at RM2,200 a tonne.

Speaking at the Palm and Lauric Oils Price Outlook Conference, Fry said the Organisation of Petroleum Exporting Countries (OPEC) will keep Brent crude trading in a US$65 to US$70 per barrel range.

He also said India's import tariff hike for palm oil and refined palm oil meant that the Malaysian Palm Oil Board palm oil stock would not fall below 2.3 million tonnes this year and would end 2018 higher than 2017.

He added: "Malaysian export taxes for palm oil might be suspended until August if the national elections are delayed until their final deadline."

 

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