Palm oil may fall below US$800: Fry

Don't know why the news agencies report on such expert opinion. To me the opinion is as the Chinese says, "don't say better than say". Come on, the current price as quoted in the article is US$747 per metric tonne, which is very OBVIOUSLY below US$800.

Oh and incidently the price gapped up on opening of the Fcpo futures today.

The text of the news article is below.

Palm oil may fall to less than US$800 a metric ton if crude dips to under US$70 a barrel amid the global financial crisis, James Fry, managing director of LMC International, said.

"If crude oil settles below US$70 a barrel, this would leave crude palm oil prices more or less where they were in April, at just below US$800 FOB South East Asia," he said by e-mail ahead of his presentation to an industry group in Beijing.

Palm oil in Rotterdam, which measures European prices for the tropical oil produced mainly in Indonesia and Malaysia, closed at US$812.50 a ton yesterday, according to Bloomberg data.

Palm oil for August delivery on the Malaysia Derivatives Exchange, the industry benchmark, gained 0.2 per cent to RM2,464 (US$747) a ton at 10:37 am in Singapore. Crude oil in New York lost 14 per cent in May for its worst monthly performance since December 2008 on concerns the sovereign debt crisis in Europe may hurt the global economic recovery. Oil last traded 0.1 per cent higher at US$72.68. -- Bloomberg

fiG1Ezc