Monday, 18 October 2010

news: Vegetable Oils Markets Overpriced, Correction Due

[Dow Jones] Recent rally in global vegetable oils market amid weather, supply concerns considered overdone, when compared with oil prices, indicating further correction in vegoil prices, says Lan Chen, economist at agribusiness consultancy firm LMC International. Notes MPOB end-month palm oil inventory levels may peak at 2.25 million tons, without giving timeframe; adds CPO output to "be strong in 2011." Chen predicts CPO prices may trade at MYR2,500-MYR2,600/ton next year. US soyoil $100 overpriced in biodiesel market, "may place downward pressure on soyoil and in turn, pressure palm oil prices lower," Chen says at industry conference. Palm oil moves in tandem with soyoil as both compete for similar export destinations, including China, India. New benchmark January contract trading MYR44 lower at MYR2,892/ton. (