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Friday, 6 January 2017

CPO price expected to strengthen further this year

Crude palm oil being unloaded from tankers

Crude palm oil being unloaded from tankers

JASIN: The price of crude palm oil (CPO) is expected to strengthen further this year based on the price increase of up to 45% last year, as well as government initiatives to venture into various markets especially China.

Malaysian Palm Oil Board (MPOB) chairman Datuk Seri Ahmad Hamzah said the government’s commitment to broaden existing markets and explore new markets had also supported the commodity price last year.

“Currently, the commodity price has strengthened at a favourable level. As of end-2016, the price at which the oil palm smallholders sold to the middlemen had increased by up to RM650 per tonne.

“The same goes for rubber. We are confident the prices of the two commodities will continue to strengthen further this year,” he told reporters after Jasin Parliament’s School Assistance Presentation to 200 school children here Wednesday night.

Ahamd who is also Jasin MP said besides venturing into new markets, the government’s efforts to assist oil palm smallholders would also help to strengthen the commodity’s price.

“I hope the smallholders will benefit from the increase in income due to the higher price... they should be thrifty and save in case the CPO price suddenly drops. We don’t want it to fall but if it happens, the smallholders are prepared,” he said.

Meanwhile, Ahmad said the country’s fresh fruit bunch production fell 20%-30% last year due to unfavourable weather as well as the impact of the El Nino phenomenon.

“However, we are confident it (unfavourable weather) will not prolong and be as bad as last year, hence, will help in the development of the two commodities,” he said. – Bernama

Tags / Keywords: Commodities , Palm Oil , MPOB

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