...Low-Price Environment Persists: Fitch Ratings expects crude palm oil (CPO) prices to remain depressed in 2016, ranging from USD600 to USD625 per ton or 50% lower than the eight-year (roughly two business cycles) peak of USD1,292 in January 2011. Export volumes of CPO ¡ the most cost-effective vegetable oil ¡ are stagnating due to the low-commodity-price environment, which has weighed on all vegetable oil prices and narrowed the price differential between CPO and other vegetable oils in US dollar terms. Palm oil's use as a feedstock in biodiesel production has translated into a high positive correlation between CPO and crude oil prices. CPO prices are being depressed further by the low crude oil prices, and Fitch's expectation ¡ and that of the industry ¡ that any crude oil price appreciation in the next 12 months is likely to be modest. Fitch does not expect the ongoing El Ni±o to adversely affect CPO output sufficiently to depress supply and propel price gains. Substantial Stock Accumulation:...
