All signs point to higher crude palm oil price

The price of crude palm oil (CPO), which is showing no sign of weakening, has the potential to register further increase as it enters into the new price cycle by year-end.

With the exception of 1994-2000 price cycle, commodity analysts said the palm oil price cycles over the past 12 years lasted between 3.5 and four years each.

..Given the additional demand for palm oil coming from increasing biofuel policies in Asia and biodiesel supplier from Europe, analysts are of the view that the discount at which palm oil trades against soybean oil – its major edible oil rival – should start to narrow further. The palm oil price is currently traded at a 30% discount to soybean oil.

The Star