CPO price almost hits US$750 per ton
Medan, N Sumatra (ANTARA News) - Although demand has begun to decline ahead of the winter season, the crude palm oil (CPO) price in Europe is continuing to strengthen and has almost reached US$750 per ton, an industry executive said.
"The CPO price has almost hit the US$750 level per metric ton. This is fantastic because many people in the trade predicted last year that the price would settle at around US$600 per ton this year as a result of the global economic crisis," Laksamana Adiyaksa, executive director of PT Asian Agri, said here on Thursday.
He said even though demand was going down, the price was expected to increase further, but a price level of US$1,000 per ton was unlikely to be achieved.
"It can reach US$800 per metric ton, or at least US$750 per ton. After all, the price of this commodity was still US$700 per ton in the Rotterdam bourse on October 22, 2009," he said.
Adiyaksa said recently that the upward trend in the CPO price would continue until the end of the year because many consumers would order large volumes to build up their stocks for 2010.
He said that CPO prices in the world market were showing a strong upward trend, reaching US$710 dollars per metric ton for November shipments.
"The upward trend in the CPO price has been triggered by crude oil price increases and low stocks," he said.
He said that the increasing CPO price began to be observed on October 22, 2009 when the market at the Rotterdam Bourse closed at US$700 per metric ton.
Adiykasa said the low stocks happened not only in Indonesia but also in Malaysia.
As a result of the low stocks, consumer countries were concerned and ordered large volumes, boosting prices.
The price increases were further galvanized by an increase in the world crude price, Adyaksa said.(*)
COPYRIGHT © 2009 ANTARA
PubDate: 11/19/09 20:51
