Prices risk tumbling further to approach the cost of production, according to Dorab Mistry, director at Godrej International Ltd. Private-sector estates in Malaysia and Indonesia have costs of about 1,500 ringgit to 1,600 ringgit a ton, Mistry said in e-mailed comments to Bloomberg News.
Sime Darby Bhd’s average cost of production in Malaysia and Indonesia is about 1,400 ringgit a ton, according to Franki Anthony Dass, executive vice president of the Petaling Jaya, Malaysia-based company’s plantation division.
(So, what will happen if CPO Futures price really falls to such level???)
Source: Bloomberg News