Crude palm oil price forecast dropped to $278 per tonne in 2009, down more than 70 percent from 2008 high, on biodiesel demand drop

In Malaysia, CLSA Asia-Pacific Markets reduced its price forecast for crude palm oil to $278 dollars per tonne in 2009, down from more than $1000 in early 2008, due to falling world demand, oversupply, and the low activity in biodiesel production. Palm oil inventory has increased to 2.1 million tonnes in Malaysia, up 14 percent from the corresponding period last year, due to export slowdowns to China and the Netherlands, and increased production. The Malaysian deputy commodities minister said that the government was targeting a price of $550 per tonne in 2009.

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