FGV sees lower CPO prices in first half of 2018 on market competition

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) foresees slightly lower crude palm oil (CPO) prices of between RM2,500 and RM2,700 per metric tonnes moving into the first half of 2018.
This is due to market competition from its rival soybean oil and the recovery of palm oil plantations, said group president and CEO Datuk Zakaria Arshad at a media briefing here today in conjunction with the release of FGV's third-quarter results.
For the fourth quarter of 2017, CPO prices are projected to be in the range of RM2,600 to RM2,800 per metric tonne.
On India's recent move to lift import tax on CPO from 15% to 30%, Zakaria believes it will only be a short-term impact as India will eventually look for cheaper oil.
FGV's CPO exports to India account for 10% to 12% of the group's total production.