Breaking News-RTRS-Palm seen at 1,600 ringgit on weak economies-Mistry

KUALA LUMPUR, Oct 17 - Malaysian crude palm oil futures are likely to hover at 1,600 ringgit per tonne as long as oil prices trade around $80 a barrel amid a slowdown in the global economy, top industry analyst Dorab Mistry said on Friday. Mistry said palm oil at 1,600 ringgit -- slightly more than a third above the break even point for mid-size plantation firms -- was also thanks to bumper harvests in top producers Malaysia and Indonesia while Asian demand cooled. He said prospects of palm getting channeled into biofuels could be slim unless prices continue to stay low for at least 8 to 10 weeks because margins are always erased when traders start locking in positions in anticipation of higher demand. "If crude oil is trading at or below $80 and the prognosis is for a weak economy and lower prices, then palm oil needs to get ahead of the curve and to demonstrate its price competitiveness," Mistry said in a speech to be delivered at an industry conference in China.