Malaysia's palm oil output seen rising

Malaysia's palm oil output seen rising

HAMBURG (Reuter): Malaysian palm oil output in calendar 1997 is estimated at 8.81 million tons compared with 8.39 million in 1996, Oil World newsletter said, revising an April forecast for 8.40 million.

The publication cited a long biological growth cycle, better varieties and fertilizer inputs, and beneficial rain patterns.

But 1998 output was likely to fall because trees needed to recover from a three-year high-yield cycle. Yields in 1998 were forecast to fall to 3.5 tons per hectare (tph) from an estimated 3.70 in 1997.

Oil World made similar adjustments to forecasts for the Malaysian palmkernel complex -- palmkernel output in 1997 was forecast at 2.62 million tons versus 2.51 million in 1996 and versus 2.52 million estimated in April for 1997.

Palmkernel output in 1998 may ease to 2.50 million tons.

Palmkernel oil output in 1997 was put at 1.14 million tons, up 3.2 percent from 1996, and seen steady in 1998.

Most of the increase should go into domestic consumption.

Palmkernel meal output in 1997, at 1.42 million (1.38 million 1996), should be aimed for export at competitive prices. Meal output may be steady in 1998 and exports up.