16/10/2012 (Bernama) - The supply of Malaysian palm oil is expected to increase to 19.1 million tonnes next year from the 18.91 million tonnes recorded in 2011.

This is mainly due to sound weather conditions in the country, Ganling Sdn Bhd Director, Ling Ah Hong said.

He said this year, the supply of Malaysian palm oil is forecast to fall to 18.4 million tonnes, due to the residual effects of the last El Nino in 2009.

He added that palm oil production globally was affected in 2010 by adverse weather conditions, with the El Nino phenomena in June 2009 and April 2010, resulting in prolonged dry weather conditions in many parts of Indonesia and Malaysia.

"This in turn resulted in a significantly lower palm oil supply globally by Indonesia and Malaysia in 2010.

"However, palm oil production in both Indonesia and Malaysia recorded significant recovery in 2011, especially in the second and third quarters of last year, aided by the La Nina rainfall in 2010 and 2011," Ling said at the International Palm Oil Trade Fair and Seminar 2012, here today.

The El Nino-Southern Oscillation is a quasiperiodic climate pattern that occurs across the tropical Pacific Ocean roughly every five years.

The Southern Oscillation refers to variations in the temperature of the surface of the tropical eastern Pacific Ocean - warming and cooling known as El Nino and La Nina respectively - and in air surface pressure in the tropical western Pacific.

Ling said weather plays a very important role in the growth of Malaysia's palm oil industry. In contrast with Indonesia, Malaysia's growth is more dependent on a stagnant area base, while the former has new areas for future growth.

"Over the last 24 months, the weather has been fantastic. There is no clear indication of an El Nino or other natural danger.

"Thus, the growth will be there next year, and I think both Malaysia and Indonesia will be seeing a record supply in 2013," he added.

Ling said in total, Malaysia and Indonesia, are expected to record palm oil supply of 47.9 million tonnes.