CPO price to surge in 2011 on global demand, oil

JAKARTA: The price of crude palm oil (CPO) is predicted to rise next year due to growing demand and diversification of the derivative products, an economist said.Latif Adam, an economist at Indonesian Institute of Sciences (LIPI), predicted that there
News Editor | 23 Desember 2010 13:18 WIB

JAKARTA: The price of crude palm oil (CPO) is predicted to rise next year due to growing demand and diversification of the derivative products, an economist said.Latif Adam, an economist at Indonesian Institute of Sciences (LIPI), predicted that there will be an increase in demand for CPO derivatives, such as vegetable oil and cosmetics, in China, India and European countries.Moreover, he added, the possibility of CPO derivatives to be an alternative energy will boost demand for CPO while the number of the CPO producing countries are limited to those from Southeast Asia, such as Indonesia and Malaysia.Higher CPO price is in line with the increase in crude oil price, which is predicted to reach US$90 to US$100 per barrel next year, compared to US$80- US$85 per barrel in 2010.If the price of crude oil rises 10% next year, CPO price will also rise at the similar percentage, he said.He believed that the global CPO price will benefit Indonesias exports since the commodity accounts for 10% to 11% of total exports.CPO is one of Indonesias top exports. By value, CPO is the second, behind coal, he said. (T04/NOM)

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