Mar 21, 2010

Plantation: Dry spell may result in lower CPO output

The current El Nino dry spell, if prolonged until the middle of this year in major oil palm growing states in Malaysia, could result in lower-than-expected production for the year. This could also cause crude palm oil (CPO) prices to stay firm at RM2,400 to RM2,800 per tonne for the rest of 2010, say industry players. While January to March was traditionally a low peak production season for palm oil, planters expected the impact of El Nino on the growth of oil palm fresh fruit bunches
(FFB) to be felt only within the next eight to ten months, said Malaysian Estate Owners Association (MEOA) Boon Weng Siew. (StarBiz)