Demand will continue to fuel CPO prices

Although there is a record stockpile of 1.6 million tonnes in the country now, Malaysia’s crude palm oil (CPO) prices are expected to ride firm until 2007 on the back of new global biodiesel demand.

Golden Hope Plantations Bhd group chief executive Datuk Sabri Ahmad said the anticipated global demand for palm oil in the coming years is phenomenal and something he has not seen in the commodity’s 50-year cycle.

“Prospects for palm oil are still good because most biodiesel plants all around the world will be operational in 2007 and palm oil will be one of the main feedstocks.

Business Express