Nusa Dua, Bali (ANTARA News) - Indonesian crude pal oil (CPO) producers predict that the CPO price in the world market will fall further to US$500-US$600 per ton from US$600-US$700 per ton this year.<\/p>\n
\"Actually it is difficult for me to predict the CPO price next year. But it could be US$500-US$600 per ton based on the prevailing trend in which the price dropped to US$505 per ton in late November 2008,\" said Derom Bangun, chairman of the Indonesian CPO Producers Association (GAPKI).<\/p>\n
He was speaking at an Indonesian Palm Oil Conference and Price Outlook 2009 here on Thursday.<\/p>\n
The CPO price during the April-May period in 2008 reached US$1,300 per ton but it later went downward to stand at US$800 per ton in August.<\/p>\n
Bangun said he feared the fall in the CPO price constituted a 5-6 year cycle so that he was not sure whether next year the price would recover or even drop further.<\/p>\n
At the end of November 2008, the CPO price in the country showed an improvement after the government issued a mandatory policy requiring the use of a mixture of vegetable and fuel oils.<\/p>\n
On November 25, the CPO price in Rotterdam was recorded at US$489 per ton but on November 28, it had risen to US$505 per ton.<\/p>\n
The same condition also happened at home. On November 25, the price of CPO (FOB) at Belawan\/Dumai was Rp5,329 per kg. It rose to Rp5,915 per kg on November 28.<\/p>\n
Amid the fall in the CPO prices, however, Chinese investors still are still interested in doing business in the sector.<\/p>\n
Meanwhile, according to a report from Medan, a few Chinese investors are planning to invest in palm oil-based biodiesel production in North Sumatra and have in this context sent an exploration team to the province.<\/p>\n
\"A team of Chinese businessmen is expected to arrive in North Sumatra to talk about their investment plan and survey local conditions,\" Washington Siregar, acting head of North Sumatra`s plantation office, said in Medan, North Sumatra, on Wednesday.
\n(*)<\/p>",
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