WEAKER growth in Southeast Asian palm oil production and normal demand expansion will set the stage for a bull market next year, leading industry analyst Dorab Mistry said yesterday.
"For the next one year it will be a tug of war between bullish fundamentals and a somewhat uncertain macro economic situation. I am backing the tight fundamentals to prevail," he told the Indonesian Palm Oil Conference and Price Outlook in Bali island.
Mistry said demand from India, the world's largest palm oil buyer, would likely continue to expand as long as prices of refined, bleached and deodorised palm olein used in cooking oil stayed around US$1,100 FOB or US$1,300 landed cost next year.
This represents a rise from the US$1,200 landed cost forecast this year that Mistry calls the "Indian biting point" or the maximum price at which price-sensitive buyers are comfortable to with before they cut back on purchases.
"With food price inflation still strong and the economy growing at a minimum of seven per cent even in these difficult times, it is necessary that the Indian biting point be raised," he said. Reuters
"For the next one year it will be a tug of war between bullish fundamentals and a somewhat uncertain macro economic situation. I am backing the tight fundamentals to prevail," he told the Indonesian Palm Oil Conference and Price Outlook in Bali island.
Mistry said demand from India, the world's largest palm oil buyer, would likely continue to expand as long as prices of refined, bleached and deodorised palm olein used in cooking oil stayed around US$1,100 FOB or US$1,300 landed cost next year.
This represents a rise from the US$1,200 landed cost forecast this year that Mistry calls the "Indian biting point" or the maximum price at which price-sensitive buyers are comfortable to with before they cut back on purchases.
"With food price inflation still strong and the economy growing at a minimum of seven per cent even in these difficult times, it is necessary that the Indian biting point be raised," he said. Reuters
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