KUCHING: While crude palm oil (CPO) prices are expected to be buoyant going into 2014, the price rally is likely to cool following the first quarter of 2014 (1Q14) as the oilseed industry is expected to be well supplied.
According to Alliance Research Sdn Bhd (Alliance Research), regarding CPO prices next year, as inventories have come off to more favourable levels over the course of 2013 and will likely close the year around two million mt, compared to 2.63 million mt at end 2012, the prices are expected to stay fairly buoyant going into 1Q14.
However, as per seasonality in 1Q, CPO production is expected to decline and prices might trend towards the RM2,800 per mt levels as inventories dip to 1.7 million mt.
“That said, we do not expect CPO prices to trend into the RM2,800-3,000mt range but instead taper back down as the export scenario going into 2014 is weak,” Alliance Research said.
Some excerpts from The Borneo Post.