15 July 2011 04:54 [Source: ICIS news]
“The weather in the past two months had been good, so we get better palm oil crops that produces higher yield,” said a
The strong harvest is expected to continue in the months but this will likely put pressure on CPKO prices, industry sources said.
“I expect CPKO production to increase in July as current weather patterns look conducive to palm cultivation this quarter,” said a Singapore-based palm oil trader.
On Friday, CPKO was trading at $1,322/tonne (€939/tonne) FOB (free on board)
Market players in the oleochemical sector welcome the decline in CPKO prices.
“This is good news to us,” said an India-based oleochemical buyer.
But the fall in CPKO prices may not be sustained for long, said a second palm oil trader.
“It is very hard to tell if CPKO prices will remain low throughout July despite [the] higher production forecast. It is so volatile nowadays, it may rebound anytime,” he said.
($1 = €0.71)
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