Wednesday, January 13, 2010

Palm Oil Production To Grow By 5-10 Per Cent In 2010

12/01/2010 (Bernama), Kuala Lumpur - Crude palm oil production is expected to grow by 5-10 per cent in 2010, said ECM Libra Investment Research.

However, the production in the near term is expected to ease amid lower output cycle, it said in its research note Tuesday.

The industry achieved some 17.6 million metric tonne in production last year, down by one per cent from 2008's output of 17.7 million metric tonnes.

"(Hence), there is no shortage of crude palm oil in the industry," it said.

On price, ECM Libra said that the current crude palm oil prices were not reflecting the fundamentals but rather just sentiments on commodities and was also led by the decline in the U.S dollar.

"As such, it may be the case that crude palm oil prices beyond RM2,500 per tonne will not be sustainable into February or March when the typical yearly production down-cycle ends," he added.

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