KUALA LUMPUR (Dow Jones)--Crude palm oil prices may rise to MYR2,800 a metric
ton by May, buoyed by the weakness in Malaysia's palm oil production and
overall tightness in global vegetable oil supply, a chief trader from
Malaysia-listed plantation company IOI Corp. (1961.KU) said Monday.
"Palm oil prices are now more dictated by weather. It is either a case of too
much or too little rain (which can affect oil palm yields)," Yong Chin Fatt
said ahead of an industry conference.
Unlike most vegetable oil crops, which are irrigated, palm oil is rain-fed
and is highly dependent on weather conditions.
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