Top industry analyst James Fry Tuesday revised the crude palm oil price outlook after Malaysia posted a jump in palm oil output to a record high 1.99 million metric tons in October.
Fry shaved MYR250 off his previous outlook, now projecting CPO prices may now rise to MYR2,375/ton by April if Brent crude oil holds steady at $75 a barrel, he said at a regional palm oil conference.
Malaysia's October palm oil output, which has risen 27% to 1.99 million tons, the highest monthly output on record, indicate palm oil stocks may rise to 2.1 million tons towards the end of the year, Fry, chairman of U.K.-based LMC-International Ltd., said.
In offering his revised price outlook, Fry pointed out that ample palm oil stocks may lead to "a lower premium for CPO prices over Brent crude prices in the next two-three months," he said.
Domestic palm oil reserves jumped 25% on month to a 10-month high of 1.98 million tons at the end of October, the Malaysian Palm Oil Board said earlier in the day.
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
(END) Dow Jones Newswires
November 10, 2009 08:02 ET (13:02 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
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