CPO in Malaysia Ringgit per Ton 4000

Nusa Dua.- Price of crude palm oil or crude palm oil in Malaysia market expected to gradually rise to 4,000 ringgit per tonne in June 2012.
"That's because Malaysian production is estimated to be flat in 2012, between 18.6 million to 19 million tons, while Indonesia acquisition could reach 26.5 million tons with a new planting area," said Director of Godrej International Ltd, Dorab Mistry, after attending a conference of Indonesian Palm Oil Association (Gapki) in Nusa Dua, Bali, last weekend.

According to him, the price increase that would boost world food prices, as predicted for the United Nations this year.

In addition, he continued, at a very low production growth and the growth of normal demand, then prices will tend to rise.

Dorab said that global production can be increased by around two million tonnes next year with better recovery in Central America.

He added that the demand for vegetable oils, rose 5.5 million to six million tons in the 2011-2012 marketing year, outpacing the supply, with food and biofuel demand growth, each of which ranges from three million tonnes.

"Consumption in India is the largest user of palm oil will continue to grow during olein or cooking oil prices are at approximately the level of U.S. $ 1,100 per ton (FOB)," he said.

Dorab adding that India is still a price sensitive market so that no single factor causes stronger upward trend for the domestic edible oil prices exceed the weakening rupee.

Previously the price of palm oil in the national market in 2012 estimated an average of Rp 8400 per kilogram. "We estimate the average price of palm oil during January-December 2012 amounting to Rp8.400 per kilogram," said Vice Chairman of the Indonesian Palm Oil Board, Derom Bangun.

He explained that these prices at any given time will increase and decrease. Particularly in Indonesia, that price is for the market so the price of the company must continue to be reduced. "Prices could be under Rp7.500 or even rise above Rp9.000 per kilogram," said Derom.

Derom added that in Rotterdam, the Netherlands, the price is estimated at U.S. $ 1,050 per tonne, while in Malaysia reached 2850 ringgit per ton. According to him, the price in the Netherlands could drop below U.S. $ 1,000 or even could be over U.S. $ 1,100, as well as in the neighboring country. (Ant)/MB