Conference: Positive factors to buoy CPO prices

Malaysian palm oil futures reversed losses in its second half of trade on Thursday, rising to a one-week peak as sentiment turned bullish on higher price forecasts from an industry conference.

KUALA LUMPUR: Higher Indonesia biodiesel mandate, slower palm oil supply growth for Indonesia and increase in palm oil demand from China will be the key factors to pare down the high palm oil stocks and help raise crude palm oil (CPO) prices, according to the key takeways from the recent Annual Palm and Lauric Oils Conference (POC 2019).

CIMB Equities Research said overall, the speakers expected global palm oil demand to outstrip supply in 2019 but they had different price views due to differing expectations on how well the additional palm oil supply will be absorbed by the market at different price points.