Biofuel demand lifts palm oil prices

Palm oil prices are likely to range between RM1,600 and RM1,700 a tonne in 2007 from RM1,450 now, driven by growing demand for biofuels, said a top industry official.

The output of palm oil in Malaysia, the world’s largest producer, would likely rise to around 15.5 million tonnes this year from 14.9 million in 2005, Malaysian Palm Oil Association chairman Datuk Sabri Ahmad said.

“The production up to the second half has not been so good, but in the second half we are seeing good crop recovery.”
The Star