KUALA LUMPUR: Riding on the current rally in crude palm oil (CPO) prices, CPO could average at the RM3,177 level a tonne this year, 14% higher than 2013's average.
ISTA Mielke GmbH Oil World executive director Thomas Mielke said on Wednesday there is little potential upside left from the current high levels but "prices in Rotterdam could still touch or slightly exceed US$1,000 in the next four to eight weeks.
He explained that this was if palm oil planting regions get the required rainfall.
"Assuming rain will fall in the coming weeks (in Malaysia, Indonesia and Thailand), I see a limited upside," he said during his presentation on the second day of the Palm and Lauric Oils Conference and Exhibition.
His projection for the average CPO price for the year was US$970 (RM3,177).
Rabobank International's forecast for the 12-month CPO prices was an average RM2,800 per tonne. Its projection for the second quarter of 2013 is higher at RM3,000 per tonne, due to a shortage of soybean oil production in the South America. The high price is expected to dip in the second half of the year.
