BANGI, MALAYSIA (Dow Jones)--Crude palm oil prices may rise marginally over the next six months from current levels as tight palm oil inventories can help extend gains in prices, industry analyst James Fry at LMC International said Thursday.
"Palm oil prices will only go up slightly...the weakness in soyoil prices will limit gains (in CPO prices)," Fry told Dow Jones Newswires on the sidelines of an industry event.
Palm oil usually trades at a discount of more than $100/ton to soyoil.
However, the weakness in soyoil prices, due to a record soybean harvest from South America, has narrowed the gap to around $10/ton, with refined, bleached palm olein now offered around $812/ton, almost at par with crude soyoil, free on board Argentina and Brazil that is offered at $805/ton, trade participants said.
Palm oil may lose market share to soyoil as the narrowing discount may prompt buyers to shift demand to other vegetable oils, including rival soyoil.
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com
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