KUALA LUMPUR:'' The wet weather caused by the La Nina will likely push the crude palm oil (CPO) futures to RM3,300 per tonne by the first quarter of 2011, says IOI Corp group executive chairman.
Tan Sri Lee Shin Cheng said on Friday, Oct 29 that 'RM3,400 is possible if La Nina sets in,' adding that the current CPO futures had not taken into consideration the weather yet.
'If you take the bad weather into consideration then RM3,300 and RM3,400 is not a dream. It is a reality,' he said, when asked to comment on a forecast that CPO futures would hit between RM3,300 to RM3,400.
Asked if the CPO rally is sustainable, Lee said there would always be a cycle for the CPO prices.
CPO third-month futures closed RM24 down at RM3,061 on Friday.
Credit Suisse Research, had in a recent report, forecast a year-end seasonal rally, possibly until early 2011 for CPO.
It said palm oil spot prices have breached the RM3,000 level, and is now at a 27-month high. Year-to-date (YTD), palm oil spot prices have averaged RM2,599 a tonne, up 18% year-to-date
Tan Sri Lee Shin Cheng said on Friday, Oct 29 that 'RM3,400 is possible if La Nina sets in,' adding that the current CPO futures had not taken into consideration the weather yet.
'If you take the bad weather into consideration then RM3,300 and RM3,400 is not a dream. It is a reality,' he said, when asked to comment on a forecast that CPO futures would hit between RM3,300 to RM3,400.
Asked if the CPO rally is sustainable, Lee said there would always be a cycle for the CPO prices.
CPO third-month futures closed RM24 down at RM3,061 on Friday.
Credit Suisse Research, had in a recent report, forecast a year-end seasonal rally, possibly until early 2011 for CPO.
It said palm oil spot prices have breached the RM3,000 level, and is now at a 27-month high. Year-to-date (YTD), palm oil spot prices have averaged RM2,599 a tonne, up 18% year-to-date
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