HAMBURG: Global palm oil prices are likely to remain high in
coming months despite recent weakness, Hamburg-based oilseeds analysts
Oil World forecast yesterday.
“Palm oil prices will indeed be
supported in the next four to six months, considering that soyaoil
supplies are still tight in South America, sun oil supples are becoming
increasingly scarce and the production prospects for palm oil are at
least uncertain,” it said.
Unusually large palm tree
replantings in Malaysia will reduce the area of mature productive trees
while the El Nino weather pattern could damage Asian palm production,
it said.
Global soyaoil supplies are still tight following poor
South American soyabean crops in early 2009 while a large rise in
sunflower oil crushings following a poor crop is likely to cut stocks.
hitting a seven-month high on January 5, dragged down by
bigger-than-expected stock levels in December, weaker exports in the
first 10 days of January and fears of reduced China buying. But the
long-term outlook was still for firm palm prices and this was
increasingly being realised, it said. – Reuters
Source : Business Times
