Palm oil price to rise as El Nino gets serious

Analysts at the Royal Bank of Scotland (RBS) have raised their forecasts for crude palm oil (CPO) prices for the next three years by 16-20%. They cited a more severe El Nino effect on weather conditions than earlier forecast as one reason for the spike. For 2010, their forecast for crude palm oil was revised up from US$730 per ton to US$850 per ton. They also highlighted that the 2009 average price was US$702 per ton while the latest price is US$760 per ton. For 2011 and 2012, the price for crude palm oil has been revised up to US$950 per ton. (January 28, 2010)