Crude Palm oil prices can witness further short-term recovery, but will "trend lower" in the second half of 2017, weighed by soft Chinese and Indian demand, besides recovering world output, Anglo-Eastern Plantations said, according to media reports. The palm oil and rubber producer, terming high current prices of the vegetable oil, said that they should sustain at least into the April-to-June quarter, underpinned by the impact of the last El Nino on reducing production, and fostering a run-down in world inventories.
Rotterdam palm oil prices, which on Tuesday stood at $662 a tonne are expected to be in the range of $650-850 a tonne for the first half of 2017, Anglo-Eastern Plantations said.
We do however expect the crude palm oil price to trend lower for the remaining of 2017 as production recovers, the group said, reflecting broad expectations of a revival in output in top growers Indonesia and Malaysia from levels depressed by dryness blamed on El Nino.
Powered by Commodity Insights