KUALA LUMPUR, Jan 3: Crude palm oil prices have hit bottom and are likely to trade at 1,500-1,600 ringgit ($432.9-$461.8) a ton in the next six months, a Malaysian newspaper has quoted a minister as saying.

Palm futures in Malaysia, the world’s second-largest palm producer, dropped 44 per cent in 2008, marking their biggest annual decline on record.Personally, I would like to see the CPO (crude palm oil) price stabilising at 2,000 to 2,600 ringgit per ton, the Star newspaper quoted Malaysia’s commodities minister, Peter Chin, as saying.

I think over the next six months, CPO prices will trade at 1,500 to 1,600 per ton he added.

This is taking into account the measures implemented by Malaysia, including cutting down oil palm trees which are above 25 years old and implementation of the biofuel programme. The benchmark March palm oil contract on Bursa

Malaysia’s Derivatives Exchange finished up 45 ringgit, or 2.65 per cent, at 1,740 ringgit per ton on Friday.

—Reuters