The palm oil price boom is expected to last for at least another five to 10 years as the world will become increasingly dependent on the commodity to meet the burgeoning demand for vegetable oils, Dorab Mistry, director, Godrej International, a London-based trading company, said Wednesday. Mistry, whose price forecasts for vegetable oils are followed closely worldwide, gave a very bullish prognosis for palm oil in the medium to long term.
"I fully expect prices to rally and to climb to higher levels, which will encourage growth and rein in rampant demand," Mistry said during a conference on biofuels in Seville.
The benchmark third month CPO futures on Malaysia's derivatives exchange rose above MYR3,000 a metric ton for the first time in November last year and reached an all time high of MYR4,486 on Mar. 4. They haven't traded below MYR3,000 so far this year.
The benchmark contract ended MYR26 higher Wednesday at MYR3,558/ton. |