Global palm oil prices likely to rise: Oil World
December 13, 2012
Global palm oil prices are likely to rise in early 2013 because of high export demand stimulated by current competitive palm prices compared to soyaoil, rapeseed oil and other edible oils, Hamburg-based analysts Oil World said on Tuesday. “We expect palm oil prices to appreciate in the next three months owing to the pick up in export demand, seasonally declining production and the resulting reduction in stocks,” Oil World said.
“Consumers will take advantage of the unusually high current price discounts of palm oil and lauric (palm derivative and coconut) oils in both the food and non-food sectors.”
Crude palm oil for January 2013 delivery was quoted at $770 a tonne cif in Rotterdam and Hamburg on Monday, far below January soyaoil at 918 euros a tonne ($1,190) and rapeseed oil for February delivery at 920 euros a tonne ($1,192 ) both fob European mills. Indonesia and Malaysia are the world’s main palm oil exporters.
Soyaoil prices are currently high because of poor soyabean harvests in South America and the US this year. “Some countries – for example China and Pakistan – are likely to reduce imports of rapeseed and canola for domestic crushings and instead import larger quantities of competitively-priced palm oil,” Oil World said.