seven-month lows as combined overseas and local demand outpaced sluggish
output, a Reuters poll showed today.
Inventories in the world’s No. 2 palm oil producer fell for the
fourth straight month to hit 1.59 million tonnes although the pace of
the decline slowed due to higher crude palm oil imports from rival
Indonesia, a Reuters poll of five plantation houses showed.
“Traders want slow production to pick up so that stocks can rise
and refiners can be more aggressive in their production,” one poll
contributor said.
April’s palm oil output fell 7 per cent to 1.3 million tonnes
due to oil palm tree stress that set in after higher seasonal production
in the last quarter of 2009.
Another poll contributor said palm oil is currently recovering from
the low crop season but after effects of El Nino weather pattern has
slowed down output.
“Palm oil production is compounded by low rainfall patterns in
certain states, that’s why the output was at a slight deficit,” said the
contributor.
Hamburg-based oilseeds analysts Oil World estimated global 2010
palm oil production at 46.9 million tonnes, up 1.6 million tonnes on the
year, but lagging sharply behind rises of 2.0 million tonnes in 2009
and 4.4 million tonnes in 2008.
Of the 2010 output rise, Oil World estimated only 100,000 tonnes
will come from key exporter Malaysia and 1.2 million tonnes from
Indonesia.
Industry regulator the Malaysian Palm Oil Board will release
April’s stocks, output and exports data on Monday. — Reuters
Source : Business Times
