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Anglo-Eastern palm oil output hit by bad weather
calendar18-11-2010 | linkReuters | Share This Post:

* Jan-Sept CPO output down 6 percent

* Production of fresh fruit bunches down 5 pct

* Says revenue, oper profit in line with own view (Adds details)

18/11/2010 (Reuters) - Palm oil producer Anglo-Eastern Plantations Plc (ANEA.L) said crude palm oil (CPO) production for January-September fell 6 percent as heavy rains across Southeast Asia led to lower-than-expected yields. The owner of plantations in Indonesia and Malaysia said production of fresh fruit bunches (FFB) for the period fell 5 percent from last year.

The brewing La Nina weather condition, which emerges right after El Nino's dry spell and brings more rains to Southeast Asia, has revived memories of widespread floods that inundated oil palm estates in Malaysia.

The average price for CPO was $860 per metric tonne for the three months to end-September, up 7 percent from the first half of 2010.

"CPO and FFB prices are now relatively stable and, in the absence of further adverse weather conditions, management is cautiously optimistic on the near term economic prospects of the industry," the company said in a statement.

Anglo-Eastern said revenue and operating profit for the full year remained in line with its expectations.

The company's shares, which have risen 55 percent since the start of the year, closed at 602.5 pence on Wednesday on the London Stock Exchange.