Malaysia: Palm Oil Improves

Avatar for Matt Hopkins By Scott C. Lucas|15 January 2007

The Malaysian Palm Oil Board (MPOB) reported an 11% increase in crude palm oil production in November, up to 1.6 million metric tons (MT). Output in Peninsular Malaysia increased by 13%, while East Malaysia’s production rose 8.2%. output during November 2006 was 27% higher than in November 2005. Crude palm oil output is expected to experience a seasonal drop as well as some weather-related problems in December, bringing the total CPO output for 2006 to around 16 million MT.

Recent flooding in the southern state of Johor (and Sumatra in Indonesia), and the seasonal downtrend in crude palm oil output influenced the monthly average palm oil price to soar in November and December.