15/09/2011 (Business Times) - Malaysian palm oil production is expected to rise six percent to eight percent this year, IOI Corp Executive Director Lee Yeow Chor told reporters in Kuala Lumpur today.

Production was 17 million tons in 2010.

Crude palm oil prices are likely to be sustained at around RM3,100 per metric ton for the remainder of this year, Lee said.

Prices will be supported by its “fairly substantial” discount to soybean oil, a substitute, he said. This is despite higher palm oil production expected this year, said Lee.

“Exports are very strong,” he said. “Demand for palm oil is very strong.” -- Bloomberg