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358902
Tue, 03/03/2015 - 11:39
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Palm Oil Output In Malaysia & Indonesia To Increase If Climate Remains Normal

KUALA LUMPUR, March 3 (Bernama) -- Palm oil production in Malaysia and Indonesia is set to increase in 2015 provided the climate remains normal, United Plantation Bhd's chief executive director Carl Bek-Neilsen said. "I foresee production to increase in Malaysia this year but it depends entirely on what happens in the next four to five months in relation to the weather. You got to watch the weather carefully and see what happens. "If the weather is normal, then there will be an increase in production in Malaysia and Indonesia," he told reporters at the Palm & Lauric Oils Conference and Exhibition here Tuesday. Bek-Neilsen said it was double whammy for Malaysia last year as droughts and floods caused palm oil production to decline sharply especially in the fourth quarter. "I don't expect the production in Malaysia to be lower than 2014. It all depends on the weather," he added. He said oil palm trees did not react immediately to the weather conditions and the impact on production would only be seen six to seven months later. "So, we need wait and see what happens in the next few months because if we suddenly have a terrible drought then it is going to be difficult to increase production in Malaysia," he said. Felda Global Ventures Holdings Bhd group president/chief executive officer, Mohd Emir Mavani Abdullah, agreed with Bek-Neilsen's forecast. Mohd Emir said palm oil production for 2015 would depend very much on how kind mother nature is going to be. "The first quarter of the year saw production drop a little but the overall figure depends very much on what happens in April and May onwards," he said. On price forecast, Bek-Neilsen said if Indonesia implemented its bio-diesel programme efficiently and supported by stable climate, the average price would be between US$606 (RM2,200) and US$661 (RM2,400) per tonne. (US$1 = RM3.62) "If they don't implement it very well, the average price will be between RM2,000 and RM2,200," he said. The benchmark palm futures currently stood at RM2,360 per tonne. The Malaysian Palm Oil Board's figures showed that the 2014 output rose to 19.67 million tonnes from 19.22 million produced in 2013. -- BERNAMA

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