Crude palm oil prices seen at $600-700/T over 6-12 months -Olam CEO
KUALA LUMPUR, March 3 (Reuters) - Crude palm oil will likely trade at $600-$700 a tonne free on board (FOB) over the next year, but could hit as low as $550 as supplies begin to rise in the second half of 2015, the chief executive of Olam International Ltd said.
"Our near-term prices view is slightly bearish," Olam CEO Sunny Verghese told Reuters on the sidelines of a palm oil conference in Kuala Lumpur on Tuesday.
"We see prices trade in a range between $600-$700 per tonne in the next 6-12 months, with a potential bottom of $550."
The current FOB price for palm oil out of Malaysia and Indonesia is around $657-$660 per tonne.
Verghese said prices would be pressured when supplies peak at the second half of the year.
Singapore-based Olam is a leading player in markets of a number of commodities including cocoa, coffee and edible nuts.
Olam reported a net profit of S$118.74 million ($87.07 million) for the fourth quarter and S$163.03 million for the second half, with improved revenue for both periods.
($1 = 1.3638 Singapore dollars) (Reporting by Anuradha Raghu and Gavin Maguire; Editing by Himani Sarkar)