Friday, 17 October 2014

Palm Oil Price Survey Mixed

A news wire survey of palm oil industry participants put an average price expectation on nearby palm oil futures by the end of the year around 2,161 ringgit/tonne ($660/tonne), marginally above current November futures of 2135 ringgit/tonne. 

However, there is a very wide range of ideas within the industry of 1,900-2,600 ringgit/tonne as some see the current wet weather being supportive for reduced production potential, while those on the bear side cite the significant weakness in crude oil reducing palm oil demand for bio-diesel due to its declining competitiveness.