CPO PRICES TO FETCH RM3,000 PER TONNE?

KUALA LUMPUR, Aug 20 (Bernama) -- Depleting stocks and lower output is expected
to shore up crude palm oil prices.
The golden crop is forecast to fetch about RM3,000 per tonne in the next six
months against its current price of RM2,400 per tonne, said the Chief Executive
Officer of the Malaysian Palm Oil Council, Tan Sri Dr Yusof Basiron.
He said supply shortages would be the norm of the future if biofuel usage is
factored in.
Speaking on the trends and potential for Malaysia's plantation and natural
resources sector at the "Industry Insights Seminar 2009" here today, Yusof said
very few countries are in a net supply excess position for oils and fats.
" Developed countries in Europe have embarked on bio-diesel programmes in a big
way although their bio-diesel industry have yet to take of," Yusof said.
Yusof said this provided an optimistic scenario for oils and
fats suppliers and exporters.
He estimated crude palm oil output in 2009 to reduce slightly to 17.3
million tonnes compared with 17.7 million tonnes produced last year.
" The world is experiencing an acute shortage of oils and fats in view of
the growing world population, economic growth and demand for bio-fuels.
" With a growing population, consumption will be affected if there's global
recession as more than 80 per cent of vegetable oils end up in food,
oleochemicals and biofuel," Yusof added.
He said there would be a 50 per cent increase in world population to 9
billion people in 2043 from 1999's population of 6 billion people.
-- BERNAMA
WNA VMD