Palm oil price may hit new high next week (Star)

The current buoyancy in crude palm oil (CPO) prices could possibly see the commodity scaling higher than this year's high of RM3,766 per tonne by the end of next week.

Prices could also sustain at RM3,000 to RM3,300 per tonne in the first quarter of 2011, said industry consultant M.R. Chandran.

He said CPO prices could be traded at RM3,700-RM3,800 per tonne by the year-end “should the major oil palm-growing areas in Johor, Pahang, Sabah or Sarawak were hit with heavy floods anytime now, given the current monsoon season.”

For 2011, Chandran is targeting higher average CPO prices at RM2,800 to RM2,900 per tonne.

“Prices will be fundamentally supported by strong demand on the back of steady supply of CPO production next year,” he added.