07.01.2021 (www.theedgemarkets.com) - KUALA LUMPUR (Jan 7): In a year of two halves seen for crude palm oil (CPO) prices, Godrej International Ltd director Dorab Mistry predicted today Malaysia CPO prices may fall dramatically in the second half of 2021 (2H21) in anticipation of higher oil palm output after an expected stronger prices for CPO in 1H21.
Mistry, who was speaking at the Palm Oil Trade Fair and Seminar 2021 today, said "explosive" CPO price moves may happen between now and March 31, 2021 before prices are seen recovering in the second quarter of 2021.
"Prices will moderate after May 2021 and by July or August, prices may fall dramatically," Mistry said.
Mistry, who is projecting Malaysia CPO futures prices to be between RM3,700 and RM3,800 a tonne in January and February 2021, described the CPO price trend for 2021 with the phrase "a year of two halves". He said strong prices may continue to be seen in 1H21 but a decline in prices is expected in 2H21 as oil palm production is anticipated to recover then.
On Bursa Malaysia today, CPO price for January 2021 fell RM31 to RM4,009 a tonne at 3.16pm while the February 2021 contract dropped RM18 to RM3,999.