28 September 2010 05:16 [Source: ICIS news]
SINGAPORE (ICIS)--Offers for most oleochemicals in ?xml:namespace>
Values of oleochemicals ranging from fatty acids, fatty alcohols, to refined glycerine spiked at the close of Monday’s trade, following forecast from respected industry veteran Dorab Mistry that CPO prices will strongly recover.
"[The] market has gone crazy. Overnight prices went up. There [are] no underlying market fundamentals for the price increase,” said a Malaysian trader.
Mistry, who is currently a director of Indian agribusiness firm Godrej International, had predicted that demand for CPO exports would be strong after October, with prices likely to hit Malaysian ringgit (M$) 3,000-3,200/tonne ($971-1,036/tonne) in January next year.
"The industry listens to Dorab. When Dorab says the price will increase, the price will increase,” said an Indonesian producer.
The CPO futures contract traded in Bursa Malaysia closed RM20/tonne higher on Monday at RM2,770/tonne, while values of crude palm kernel oil (CPKO), palm stearin and palm olefin increased $5-42/tonne FOB (free on board) Malaysia.
($1 = €0.74 / $1 = M$3.09)
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