UPDATE 1-Malaysian palm oil prices to rise 8 pct by Feb 2015 - LMC analyst James Fry
* Palm oil yields to drop in coming months on lower price
* Inventory will start falling from November onwards
* Soybean area in Brazil could fall due to price fall (Adds quote, details)
By Rajendra Jadhav
MUMBAI, Sept 27 (Reuters) - Malaysian crude palm oil prices are likely to rise nearly 8 percent to 2,350 ringgit a tonne by February 2015 as a reduction in inventories and lower yields offset an expected drop in crude oil prices, a top industry analyst said on Saturday.
"In oil palm, you will see lower fertiliser applications and longer gaps between harvesting rounds. The result will be some drop in output," James Fry, chairman of commodities consultancy LMC International, told the Globoil India conference in Mumbai.
"On top of the fall that would occur if yields simply reverted to normal after a year characterised by generally good weather."
Malaysian palm oil futures settled at 2,177 Malaysian ringgit ($668.40) per tonne on Friday, after hitting a five-year low at 1,914 ringgit on Sept. 2.
Forecasting palm oil price to rise to 2,350 ringgit, the London-based analyst assumes the price of Brent crude will drop to $90 per barrel until February. Brent is now around $97 a barrel, after hitting a two year low of $95.60 earlier this week. Continuación...