Wednesday, 29 October 2014

Palm prices seen rising to 2,300-2,500 rgt in Jan-March- analyst Mielke

Palm oil futures could rise to trade between 2,300 ringgit ($703) and 2,500 ringgit in the first quarter of next year, leading vegetable oil analyst Thomas Mielke said on Wednesday.

Benchmark palm oil futures are currently trading at around 2,234 ringgit per tonne.

"My forecast for January to March is for crude palm oil futures at 2,300-2500 ringgit, but if energy prices appreciate, then the stage is set for higher prices," Mielke, editor of the Hamburg-based newsletter Oil World, told a palm oil industry conference in Kuala Lumpur.

But he said if energy prices fall to $75 or less, then palm prices may drop. However, palm oil prices are unlikely to drop below 2,000 ringgit a tonne, he added.

Mielke at end-September had forecast crude palm oil export prices in Indonesia, the world's biggest producer, could rise to $730-$750 per tonne in January-March 2015 due to a slowdown in production growth.

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