World palm oil output up

World palm oil output up

HAMBURG (Reuters): Global palm oil production in 1998 may reach 17.5 million tons compared with 17.4 million estimated for 1997, the independent Oil World newsletter said.

The publication reduced its Sept. 9 forecast of 17.9 million tons for 1998, citing negative effects from the El Nio weather phenomenon on crops in Indonesia, Malaysia, Australasia including Papua/New Guinea, Central and South America.

Average yields in 1998 would fall to 3.15 tons per hectare (tph) in 1998 from an estimated 3.29 tph this year, due to El Nio but also a dip in natural yield cycles.

But potential falls in production from El Nio would be more than offset by an expansion in the global mature area to 5.55 million hectares in 1998, up from 5.27 million in 1997.

Oil World also cut its forecast for the 1998 production of palmkernels, from which palmkernel oil and meal are derived, to 5.06 million tons, compared with its Sept. 9 forecast of 5.15 million and the estimated 1997 output of 4.99 million.