HAMBURG (August 13 2003) : Malaysia's 2003 palm oil output is forecast torise to 13.150 million tonnes from 11.908 million tonnes in 2002,Hamburg-based newsletter Oil World said.

It also forecasts the country's 2003 exports will shoot up to around 12million tonnes from 11.195 million tonnes last year.

"Export demand has been strong recently and is expected to remain highduring August, driven by demand from China, India and several othercountries," it said.

It forecasts a slowdown in the rate of growth in Indonesian production,with 2003 palm oil output estimated at 9.750 million tonnes from 9.2million tonnes last year.

Indonesian exports are likely to rise much less than Malaysia's to 6.8million tonnes from 6.379 million tonnes last year.

"Malaysia is currently benefiting from the relatively low stocks and highprices in Indonesia," the newsletter said.-Reuters