17 March 2011 05:49 [Source: ICIS news]
SINGAPORE (ICIS)--Malaysia’s crude palm oil (CPO) prices have fallen following news of a spike in February’s production rates, a palm oil trader said on Thursday.
“CPO prices started to fall since last Friday after the MPOB [Malaysian Palm Oil Board] released new data that showed February production of palm oil was up from January,” the trader added.
According to the MPOB, 1.09m tonnes of CPO were produced in February, up by 36,512 tonnes from January.
“The market is relieved that there is more supply of CPO. Previously when supply was tight, demand had driven up CPO prices, but now supply is enough to meet demand so prices have fallen slightly,” a Malaysian producer said.
An Indonesian producer said, “I believe CPO prices will continue to remain soft throughout Q2 [the second quarter].”
CPO values for April contracts were traded at Malaysian ringgit (M$) 3,400/tonne ($1,115/tonne) on the close of midday trading on Thursday, down M$420/tonne month on month.
($1 = M$3.05)
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