19/05/2011 (Bernama) - Malaysian palm oil prices are expected to remain relatively strong in the coming months on strong export demand for the tropical oil, Chairman of Malaysian Palm Oil Council, Datuk Lee Yeow Chor said.

He said while there were wide concerns of an over supply situation, the current unusual warm weather patterns would keep prices up for the commodity.

"For the first 15 days of this month there has been growth of over 20 per cent in terms of export," he said.

Fundamentally the market is still strong, he told reporters at the Palm International Nutra-Cosmeceutical 2011 (PINC 2011) conference here on Thursday.

Exports of Malaysian palm oil products for May 1-15 rose 27.6 per cent to 533,419 tonnes from 418,134 tonnes shipped during April 1-15, cargo surveyor Intertek Testing Services said on Monday.

In the first half of 2010, crude palm oil production was affected by the unusually hot and dry weather conditions while excessive rainfalls in the second half of the year affected Fresh Fruit Bunches yield.

On Wednesday, CPO futures climbed to a two-week high as traders bet on strong demand in the weeks to come as top vegetable oil buyers from India and China restock.

Palm oil is also expected to get a boost as a harsh wet weather is likely to affect soybean seeding in the U.S. while dry weather in Europe could cut rapeseed crop.