KUALA LUMPUR, Jan 7 (Bernama) -- Crude palm oil (CPO) prices are likely to remain in an uptrend from RM3,116 per tonne currently despite the renewed Middle East geopolitical tensions, said Malaysian Palm Oil Council chief executive officer Datuk Dr Kalyana Sundram.
The uptrend would be supported by the reduction in Indonesia’s palm oil production and the surge in crude oil prices amid the Middle East tensions, he explained.
“We see an upward trend by factoring in the demand and supply situation, whereby Indonesia’s production is not as high as anticipated previously,” he said.
On the impact of the higher crude oil prices, Kalyana said such a rise would traditionally support the prices of CPO and other edible oils.
“Hence we are very positive about the current CPO prices, of which the last closing price stood at RM3,116 per tonne,” he told reporters on the sidelines of the “We Love Palm Oil” forum here today.
According to him, the current prices correctly reflect the value of palm oil in the market.
“Since the price is already above RM3,100, we hope it will keep rising a bit more. We think it will go up further before it stabilises,” he said.
On news that India had told refiners to resist purchasing Malaysian palm oil, Kalyana said the government had not seen an official response from the Indian government yet.
“It was only some importing associations which indicated they would do something, but buyers in India still continue to buy (our palm oil),” he added.
Palm oil, CPO, MPOC, Edible oils, Crude oil, Mideast tensions