Palm Oil Production to Grow by 5 Percent to 10 Percent This Year

KUALA LUMPUR: Crude palm oil production is expected to grow by 5% to 10% in 2010, said ECM Libra Investment Research.

However, the production in the near term is expected to ease amid lower output cycle, it said in its research note on Tuesday.

The
industry achieved some 17.6 million metric tonne in production last

year, down by one per cent from 2009’s output of 17.7 million metric

tonnes.

“(Hence), there is no shortage of crude palm oil in the industry,” it said.

On

price, ECM Libra said that the current crude palm oil prices were not

reflecting the fundamentals but rather just sentiments on commodities

and was also led by the decline in the U.S dollar.

“As such, it

may be the case that crude palm oil prices beyond RM2,500 per tonne

will not be sustainable into February or March when the typical yearly

production down-cycle ends,” he added. – Bernama

Source : The Star

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