Crude palm oil price may touch $ 432 in a month, says industry

Crude palm oil price may touch $ 432 in a month, says industry
Financial Express - Bombay,India
... not be at the expense of its availability for food use, Chin said.He also stated that Malaysia plans to complete a review of its biodiesel licencing policy by ...

Crude palm oil price may touch $ 432 in a month, says industry

Commodities Bureau

Mumbai, Sept 24 Trade and industry estimated crude palm oil prices to range $412-$432 in the next 30 days. It is projected that for the further months it will be around $410-$425. The price was estimated by majority of the panelists at Globoil 2006 during a price outlook session.

One of the panelists, Pradeep Choudhary projected the price of CPO to be Rs 500 per 10 kg in the next one year. Soy oil was projected at Rs 500-515 in the next 30 days and around Rs 500-525 in the next 60-90 days. The current international price for CPO is $422.

Sandeep Bajoria, an industry veteran and president of All India Cotton Seed Crushers Association (AICOSCA) who chaired the panel also expected CPO prices to move sideways in the next three months.

Most of the panelists expected soy oil prices on the National Board of Trade (NBOT) to be around Rs 415-425 per 10 kg by the first week of October whereas Siraj Chaudhary, MD, Cargill expected it to go up at Rs 437.5. Currently, soy oil at Indore in the spot market is trading at Rs 423.

Friday, palm oil in Malaysia advanced by 13 ringgit, or 1%, to 1,548 ringgit. The contract for December delivery traded at 1,546 ringgit at 11:24 am Mumbai time, Friday. Saturday markets were closed. Soybean oil prices were little changed at 24.69 cents a pound in the after- hours trading on the Chicago Board of Trade on Friday.

Also a poll was conducted at Globoil to find out the supply and price expectations of the stakeholders. 55% of the people expected domestic soy crop to be 7-7.5 million tonne and 48% expect groundnut oil crop to be 3.5-4 million tonne.

Forty-nine per cent expected groundnut oil prices to be in between Rs 475 -500 by November end. 39% expect October 7 NBOT soy oil price to range between Rs 420-430.

Also 58% expected duty on palm oil to remain at 70% till November 1, whereas 23% expect it to increase to 80%.

Import of vegetable oil excluding Vanaspati is expected to be at 4.8-5.3 million tonne, opined 40% of the participants while 32% expected it at 4.3-4.8 million tonne.

However, some industry veterans also expect it to exceed 5.3 million tonne.

Earlier at the inauguration, Malaysia’s minister for plantation industries and commodities Peter Chin Fah Kui stated that they would ensure adequate supply of palm oil for use in cooking.

The Southeast Asian country, the world's largest producer of the vegetable oil, will make sure that the commodity's supply for blending in biofuels would not be at the expense of its availability for food use, Chin said.He also stated that Malaysia plans to complete a review of its biodiesel licencing policy by early next year.

Palm oil is largely used as a cooking fat, led by demand in China, India and Pakistan, and for making soaps, detergents and industrial lubricants. It is increasingly used to derive methyl esters for bio-diesel.

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