Depleting stocks and lower output is expected to shore up crude palm oil prices.

The golden crop is forecast to fetch about RM3,000 per tonne in the next six months against its current price of RM2,400 per tonne, said the Chief Executive Officer of the Malaysian Palm Oil Council, Tan Sri Dr Yusof Basiron.

He said supply shortages would be the norm of the future if biofuel usage is factored in.

Speaking on the trends and potential for Malaysia”s plantation and natural resources sector at the “Industry Insights Seminar 2009” in Kuala Lumpur today, Yusof said very few countries are in a net supply excess position for oils and fats.

“Developed countries in Europe have embarked on bio-diesel programmes in a big way although their bio-diesel industry have yet to take of,” Yusof said. – Bernama