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Seasonal Dip in Malaysian Palm Oil
WASHINGTON - Mar 6/07 - SNS -- Malaysia's crude palm oil production dropped 2.5% from the previous month to 1.1 million metric tons (MT) in January on account of a seasonal downtrend in output.
The Malaysian Palm Oil Board (MPOB) reports output in Peninsular Malaysia decreased by 0.6% while East Malaysia's production was down by 5.7%. Compared to January 2005, output during January 2006 was 19% higher. The relatively small decline was largely due to the seasonal downtrend in CPO output.
Localized flooding caused minimal damage. CPO output is expected to turn around by March. The industry has recovered quickly from the second wave of flooding in the southern state of Johor in early February. Total CPO output during the Jan-Mar quarter should be within U.S. agricultural attache's earlier forecast of 3.6 million MT.
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