Crude
palm oil (CPO) prices will rise to RM3,600 a tonne in the next six to
nine months amid bullish market sentiment, says NextView Chief Market
Strategist Benny Lee.
He said volume growth and appreciation of the ringgit and Chinese
yuan against the US dollar indicated that the price would move up
further.
“In 2006 and 2008, when the US dollar keep declining, CPO prices
shot up to a historical high,” he said during his presentation at the
International Palm Oil Trade Fair and Seminar 2010 today.
CPO futures are now traded at around RM2,650 a tonne.
Lee also said CPO prices would hover around RM2,950 a tonne in the
next three months as long as the prices stayed above the RM2,600 support
level.
“Given the current buying momentum, the price still has room to
increase,” he said, adding that “volume is generally low, therefore
there are no signs of congestion in the market.”
Transgraph Consulting Pvt Ltd Chief Executive Officer Murali Krishna
P.V. said CPO prices would likely be traded at RM3,300 in the next six
months on higher global demand.
In his presentation, he said CPO prices uptrend was boosted by
modest CPO output and soyoil due to adverse weather conditions and
effects of the recovering global economy.
Bursa Malaysia Derivatives Bhd, Product and Market Development,
General Manager Jeffrey Tan Seng Hui said the exchange would introduce
more future palm oil contracts.
The possible contracts are mini crude palm oil, crude palm oil options and USD dollar palm olein, he said in his presentation.
“Introduction of more contracts will strengthen growth of Malaysia’s palm oil industry,” he added. — Bernama
Source : Business Times
