KUALA LUMPUR: Standard Chartered Global Research is maintaining its bullish call for crude palm oil (CPO)'' to average RM4,010 per tonne in 2011 with some downside risks in the third and fourth quarter.
It said on Tuesday, March 8 that while prices are much firmer than they were in November 2009, the rally has lost steam, albeit temporarily, in its view.
'We challenge the emerging consensus that prices will weaken on account of greater supply from Indonesia and Malaysia as additional trees mature.
'While we acknowledge downside risks in 2H2011, we expect palm oil demand from Europe, India and China to remain relatively firm. Additionally, external markets, including firmer energy markets, will provide support,' it said.
It said on Tuesday, March 8 that while prices are much firmer than they were in November 2009, the rally has lost steam, albeit temporarily, in its view.
'We challenge the emerging consensus that prices will weaken on account of greater supply from Indonesia and Malaysia as additional trees mature.
'While we acknowledge downside risks in 2H2011, we expect palm oil demand from Europe, India and China to remain relatively firm. Additionally, external markets, including firmer energy markets, will provide support,' it said.
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