07/08/2012 (Bernama) - Crude palm oil (CPO) output is expected to show sequential rise this month and next month in line with its historical production trend, says MIDF Research.

Its data analysis from 1980 to 2011 showed CPO production in the two months normally rose by 8.87 per cent month-on-month and 9.57 per cent month-on-month, respectively.

"As for demand, we expect India to import more CPO from Malaysia, pursuant to its latest action to double import duty on refined products in order to stimulate its local refining industry," it said in a research note Monday.

CPO export is expected to rebound in August and September as the government has recently increased the duty-free CPO export quota from 3.5 million metric tonnes to 5.6 million metric tonnes, MIDF said.

For next year, the research firm expected the average CPO price to ease by 3.2 per cent to RM3,050 per metric tonne from its current year estimate, in tandem with the expected subdued price performance of other commodities.