CPO prices could fall as cheaper oils used<\/p>\n
SINGAPORE (Bloomberg): Malaysia and Indonesia, the world's
\nlargest palm oil producers, could see prices for the commodity
\nfall as technology allows use of other oils as substitutes, an
\nindustry consultant said on Friday.<\/p>\n
Advances in genetic engineering will allow users to substitute
\npalm oil with cheaper soybean and canola oil, pulling down prices
\nof palm oil, said Alastair J. Dickie, director of Commodity &
\nFinancial Management (U.K.) Ltd., a commodities consultancy.<\/p>\n
Malaysia, the world's biggest producer of palm oil, may have
\nearned 21 billion ringgit (US$5.5 billion) from palm oil exports
\nlast year, an increase of 73.6 percent from 12.1 billion ringgit
\na year earlier. The country expects to produce about 9 million
\ntons this year, up 8.4 percent from 1998.<\/p>\n
Indonesia will likely raise palm oil output by 9.4 percent
\nthis year, which could further depress prices, after the world's
\nNo. 2 producer of the edible oil planted more of the crop.<\/p>\n
\"With production now estimated at 6.3 million tons, Indonesian
\nexports of the oil will likely jump 11.5 percent this year to
\nabout 3.3 million tons,\" said Lalang Buana, research economist at
\nthe Indonesian Oil Palm Research Institute.<\/p>\n
More of the oil on the market could push palm oil prices,
\nlower after they fell almost 40 percent in six months. The oil,
\nderived from the fruit of the oil palm tree, is used in cooking
\nand as a natural ingredient in food, soaps, shampoos and
\ncosmetics.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpo-prices-could-fall-as-cheaper-oils-used-1447893297",
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"sponsor": "Okusi Associates",
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