Singapore, Sept 9 - The price of Malaysian crude palm oil is expected to hover around $700 per tonne during the next six months, leading industry analyst James Fry said on Tuesday.
"Biofuels have become attractive again, that is one thing which will support prices. CPO is now cheap," Fry, a London-based industry analyst, told Reuters on the sidelines of an industry seminar in Singapore.
Palm oil prices have fallen 47 percent from their March peak of 4,486 ringgit due to concerns about a build-up of supplies and news of defaults from key buyers in India and China.
On Tuesday, the benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Exchange was down 3.65 percent at 2,379 ringgit ($689.5) a tonne.
"Palm oil prices are likely to hover around $700 per tonne until February next year as the demand for biofuels will support prices," Fry said. "Palm oil prices will find support around 2,300 ringgit because of the biofuels demand, unless crude oil falls faster than I think."