Palm oil may rise above $841 a tonne
Tuesday, 19 May 2009
Palm oil futures traded on the Malaysia Derivatives Exchange could exceed 3,000 ringgit ($841) a tonne "very quickly" because of a "strong" increase in consumption and production problems, an industry analyst said Monday, reports Bloomberg.
There was "a powerful bull market which has yet to realise its full potential," Dorab Mistry, director of Godrej International Ltd., said today in remarks prepared for an industry conference in Tokyo. Palm oil traded today in Malaysia at about 14 per cent less than Mistry's target threshold.
India, the largest consumer of palm oil after China, may boost consumption of all vegetable oils to 12.8 kilograms per head per year in the 12 months to October, about 12 per cent more than the year before, Mistry said in the remarks. Godrej is one of the largest importers of edible oils into the Asian country.
"Price-conscious markets like India will chase palm," he wrote in the address, saying there had been a "phenomenal" rise in the nation's usage of vegetable oils. "India's imports of vegetable oil will continue to exceed the previous year."
Palm oil for July delivery dropped 3.2 per cent to 2,580 ringgit a ton at the 12:30 p.m. trading break. Still, the world's most consumed cooking oil has advanced 52 per cent this year. In 2008, the contract plunged 44 per cent amid the global recession.
There was "a powerful bull market which has yet to realise its full potential," Dorab Mistry, director of Godrej International Ltd., said today in remarks prepared for an industry conference in Tokyo. Palm oil traded today in Malaysia at about 14 per cent less than Mistry's target threshold.
India, the largest consumer of palm oil after China, may boost consumption of all vegetable oils to 12.8 kilograms per head per year in the 12 months to October, about 12 per cent more than the year before, Mistry said in the remarks. Godrej is one of the largest importers of edible oils into the Asian country.
"Price-conscious markets like India will chase palm," he wrote in the address, saying there had been a "phenomenal" rise in the nation's usage of vegetable oils. "India's imports of vegetable oil will continue to exceed the previous year."
Palm oil for July delivery dropped 3.2 per cent to 2,580 ringgit a ton at the 12:30 p.m. trading break. Still, the world's most consumed cooking oil has advanced 52 per cent this year. In 2008, the contract plunged 44 per cent amid the global recession.