Medan, N Sumatra (ANTARA News) - Global crude palm oil prices are expected to hit a 23-year record of US$900 per ton following a rise in global oil prices, an industry spokesman said.
"CPO prices in Rotterdam rose to US$885 per ton this week from US$865 per ton a week earlier due to a rise in global oil prices and rising demand amidst tight supply from producing countries," executive chairman of the Indonesian Palm Oil Producers Association (Gapki) Derom Bangun said here on Tuesday.
The high demand for CPO would especially come from India and China, he said.
"The increase in CPO export prices has also raised CPO prices on the domestic market to Rp7,500 a kg," he said.
The tight CPO supply was the result of the weather factor such as high rainfall, he said.
Despite high rainfall, Indonesia`s CPO production this year was expected to reach 17 million tons, he said.(*)