Crude palm oil (CPO) output in Indonesia is seen rising 8 percent from a year ago to 4.5 million tonnes in the first quarter. Indonesia’s government sees full-year output rising 14 percent to 25.7 million tonnes this year. Derom Bangun, vice chairman of the Indonesian Palm Oil Board (IPOB), said he expected demand and weather problems to push up prices for the edible oil from around $1,000 a tonne now, despite the increase in Indonesian output. Bangun said he estimated the average CPO price in 2012 would be $1,050 a tonne. “Drought in South America will also be one of the main factors for the price rise,” Bangun said. However, a Reuters poll of 25 analysts forecast a median 3,000 ringgit ($960) per tonne average price for this year, due in part to faltering demand as global growth weakens because of Europe’s debt crisis.
Source: Reuters
