Oil palm prices improve but faces uncertainty: Executive

PALM oil prices have improved in the first quarter of this year but still facing uncertainty in the market given the threat of the coronavirus, New Britain Palm Oil Ltd (NBPOL) chief executive officer James Graham says.
Graham said this when responding to questions from The National on the progress of price of the commodity in the market.
He said prices have reached US$820 (K2,793) per tonne since last week compared to last year when prices were at US$535 (K1,822) per tonne.
“Bullish vegetable oil supply and demand fundamentals have increased prices over the past two months, resulting in a sizable recovery of palm oil prices,” he said.
“Crude palm oil prices last week reached US$820 (K2,793) per tonne, considerably higher than this time last year when the price languished at US$535 (K1,822) per tonne.
“That said, there is considerable concern in the market with the rising rates of coronavirus infection.
“It is difficult to know whether prices will remain long at this buoyant level, however, NBPOL has put in place robust cost efficiencies to counter any decline in crude palm oil prices.”
When asked about NBPOL’s production outlook for 2020, Graham said: “We are anticipating a production of around two million tonnes of fresh fruit bunches this year, up 200,000 tonnes from last year.”
According to Bank South Pacific’s (BSP) Pacific economic and market insight for last year’s end of the month, palm oil prices continued to decline.
It was estimated that annual average prices were well below 2017 and 2018 levels.