KL's palm oil output to rise

KL's palm oil output to rise

KUALA LUMPUR (AFP): Malaysia's palm oil production in 1997 is forecast to rise two percent to 8.2 million tons from 8.04 million tons this year, a government report said.

But the price of crude palm oil is expected to fall seven percent to 1,100 ringgit (US$440) a ton from 1,184.50 ringgit estimated for 1996, according to Malaysia's annual economic report.

Malaysia is the world's biggest palm oil producer, accounting for 62 percent of the world's output and 22 percent of the international oils and fat trade.

The report said the production of other primary commodities in the country, namely rubber, tin and crude oil, is expected to slow down next year with general decline in prices.

The production of sawn logs is also forecast to be 3.2 percent lower at 30,000 cubic meters (1.05 million cubic feet), the report said.

Rubber output is forecast to drop five percent to 1.01 million tons, tin output is expected to be marginally lower at 6,200 tons, and crude oil production is forecast to ease two percent to 691,000 barrels a day.