Crude palm oil prices may have already bottomed out and are likely to be supported by a slowdown in production and a rise in demand, Hamburg-based vegetable oils analyst Thomas Mielke said 7/11.
Mielke, who is editor-in-chief of the Oil World journal, said current palm oil prices - at just 60% of soybean oil prices - aren't sustainable and are likely to rise.
"CPO prices probably hit the lows around 10 days ago. Soy oil and CPO prices may appreciate until the end of Nov, with some fluctuations," Mielke said, giving a price outlook during an international conference on vegetable oils.
On Oct 28, the benchmark 3rd-month CPO futures on BMD hit a 3-year low of 1,331 ringgit a tonne.
Mielke also said Malaysia's CPO production is unlikely to rise in '08-09 due to lower yields, compared with last year's actual output of 17.6 m tons.
He said CPO prices are likely to range between US$650/tonne and US$1,100/tonne, cost, insurance and freight Rotterdam in the medium term.
Soy oil prices are likely in the US$750-US$1,200/tonne range, free on board the Netherlands in the medium term, he added.
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