09 May 2007
HAMBURG, May 8 (Reuters) - Palm oil prices remain vulnerable to a setback from their recent highs with bearish factors including larger than expected Indonesian production, Hamburg-based oilseeds analysts Oil World said.
Malaysian palm oil futures reached eight-year-highs last week because of strong exports coupled with smaller than forecast Malaysian output.
"Malaysian palm oil production was smaller than expected in February and March this year and it is generally expected that the seasonal recovery in April was not sufficient to prevent a further decline in Malaysian stocks as of end-April," Oil World said.
"However, the market is vulnerable to a price reaction. This could come from demand losses or better than expected Malaysian palm oil production numbers for April or May."
Another bearish factor was a forecast substantial rise in Indonesian palm oil production, it said. Oil World has raised its forecast of
"Although several parts of
Source : Reuters.com
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