Godrej International Limited Director Dorab E Mistry said, CPO prices would increase from US$ 735 to US$ 800 per ton CIF Rotterdam in January 2018. However, considering the soybean production in South America, rapeseed crops in Europe, and sunflower in Ukraine that did not show any increase next year, the price would reach US$ 850 per ton in March 2018.
“Also because of the increase in palm oil demand," Misky said as a speaker at the 13th Indonesian Palm Oil Conference and 2018 Price Outlook (IPOC 2017) in Nusa Dua, Bali, Friday (3/11).
Mistry explained, palm oil supply in 2017-2018 would increase 4 million tons, while that in 2016-2017 saw an increase of 6.5 million tons. Totally, the supply of vegetable oil would increase 7 million tons in 2017-2018, while that in 2016-2017 saw an increase of 7.1 million tons. Palm oil demand in 2016-2017 and 2017-2018 would totally increase 6 million tons.
"Other factors that drive CPO prices are the increase in crude oil prices to the level of US$ 45-60 per barrel, The Federal Reserve's policy of tightening and the gradual increase in benchmark interest rates, and the strengthening of the US dollar against the Brazilian, Argentinian, and Indian currencies. There is also no trade war," he explained.
Source: Investor Daily
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