MARKET DEVELOPMENT
Malaysian Palm Oil Output Seen at Record by Oil World Amid Rain
Malaysian Palm Oil Output Seen at Record by Oil World Amid Rain
05/06/2013 (Bloomberg) - Malaysian palm oil production may rise to a record this year as crops in the main growing state of Sabah received ample rain, Oil World said.
Palm oil output in Malaysia, the world’s largest producer after Indonesia, may be 19.4 million metric tons, 600,000 tons more than in 2012, the Hamburg-based researcher said today in an e-mailed report. Yields may be 4.4 tons a hectare (2.47 acres). The country’s exports may be as much as 18.8 million tons, up from 17.6 million tons last year, according to the report.
While some areas of West Malaysia saw below-normal rainfall in March and April, “this is not yet critical because of partly well above-normal moisture received in the preceding eight months,” Oil World said. In the eastern state of Sabah, crops received 159 percent of normal precipitation in April, “more than offsetting the inferior rainfall a month earlier.”
Demand for palm oil is increasing globally, helping spur total world export volume of 17 major oils and fats to a record 75.65 million tons in the 2012-13 marketing year that began Oct. 1, Oil World said. Global exports of palm oil may rise by 3.4 million tons, compared with a year earlier. Indonesia was the top exporter of all oils and fats at 23.2 million tons, followed by Malaysia at 20.2 million tons, according to the report.
“This development reflects primarily the rising dependence on palm oil, given the insufficient production of seed oils in the current season,” Oil World said.
Global production of palm kernel oil may climb 6.4 percent from a year earlier to 6.16 million tons in 2012-13, Oil World said. Output in Malaysia may be a record 2.3 million tons while Indonesian production may be 3 million tons. Palm oil is made from the fruit yielded from the oil palm plant, while palm kernel oil is yielded from its seed.
Palm oil output in Malaysia, the world’s largest producer after Indonesia, may be 19.4 million metric tons, 600,000 tons more than in 2012, the Hamburg-based researcher said today in an e-mailed report. Yields may be 4.4 tons a hectare (2.47 acres). The country’s exports may be as much as 18.8 million tons, up from 17.6 million tons last year, according to the report.
While some areas of West Malaysia saw below-normal rainfall in March and April, “this is not yet critical because of partly well above-normal moisture received in the preceding eight months,” Oil World said. In the eastern state of Sabah, crops received 159 percent of normal precipitation in April, “more than offsetting the inferior rainfall a month earlier.”
Demand for palm oil is increasing globally, helping spur total world export volume of 17 major oils and fats to a record 75.65 million tons in the 2012-13 marketing year that began Oct. 1, Oil World said. Global exports of palm oil may rise by 3.4 million tons, compared with a year earlier. Indonesia was the top exporter of all oils and fats at 23.2 million tons, followed by Malaysia at 20.2 million tons, according to the report.
“This development reflects primarily the rising dependence on palm oil, given the insufficient production of seed oils in the current season,” Oil World said.
Global production of palm kernel oil may climb 6.4 percent from a year earlier to 6.16 million tons in 2012-13, Oil World said. Output in Malaysia may be a record 2.3 million tons while Indonesian production may be 3 million tons. Palm oil is made from the fruit yielded from the oil palm plant, while palm kernel oil is yielded from its seed.