DJ CPO Prices Likely To Stay Around MYR3,000/Ton -Golden Agri-Resources Executive 11.08.2011
SINGAPORE (Dow Jones)--Crude palm oil prices will likely remain around current levels in the coming months, as global demand will be sufficient to absorb surplus production from Indonesia and Malaysia, Golden Agri-Resources Ltd. (E5H.SG) Executive Director Rafael B. Concepcion said Thursday.
Supply tightness for other vegetable oils and increasing demand for palm oil by makers of oleochemicals and biodiesel will keep prices supported, he said at a post-earnings news briefing.
Golden Agri-Resources, the world's second-largest palm planter by area under cultivation, expects its palm oil production to rise by more than 10% in 2011 due to better yields, Concepcion said. In 2010, the company produced 1.85 million tons of palm oil.
October CPO settled at MYR2,993 a metric ton on the Bursa Malaysia Derivatives Thursday, up 1.9% from Wednesday's settlement