Posted by Kim Yap Lau > 2012-10-07 20:51 | Report Abuse

It said CPO prices would recover when current high stock level starts to clear towards the end of 2012 or early 2013, as the market entered the low output season in one or two months' time. “This coincides with the extreme tightness in soybean up to February 2013.” However, once the US soybean stock levels get significantly drawn down, CPO prices will likely recover before end first quarter 2013 to narrow the CPO to soy-oil price discount gap before CPO price gets weaker from second quarter 2013 onwards. “I think we need to wait and see right now, as once we clear this two months, CPO prices are expected to rebound. The CPO discount to soy-oil is now at very significant levels of about US$350, compared with the average of US$150,” he said. Full article : http://adf.ly/DUbE5