New Straits Times
“I see gradual rise in palm oil prices from RM2,500 to RM2,700 by June as stocks across Indonesia and Malaysia tighten.”
DORAB MISTRY, Godrej International Ltd director
KUALA LUMPUR: Palm oil is likely to rise gradually to RM2,700 per tonne from RM2,500 per tonne on tightening of stocks across Indonesia and Malaysia, said Godrej International Ltd director Dorab Mistry.
“One cannot be pessimistic on vegetable oil prices this year,” he said at the 29th Palm and Lauric Oils Price Outlook Conference and Exhibition, here, yesterday.
“I see gradual rise in palm oil prices from RM2,500 to RM2,700 per tonne by June as stocks across Indonesia and Malaysia tighten,” said Mistry.
He estimated that stocks of Indonesia and Malaysia would settle at less than 4.5 million tonnes by June, lower than the 4.9 million tonnes in June last year.
Since the beginning of the year, palm oil futures on Bursa Malaysia Derivatives Market have averaged at RM2,500 per tonne.
On India’s move to impose higher import tax on palm oil, Mistry expects it to be temporary.
“The Indian government should reduce duty on crude palm oil by 10 to 34 per cent to boost refining in India.
“I would expect, by May, the Indian government to implement the rationale measure of reducing duty on palm oil to ease inflationary pressure on consumers,” he added.
It is India’s fourth increment of import tax on palm oil in less than six months, pushing up prices of local oilseeds in the country.
India primarily imports palm oil from Indonesia and Malaysia.