CPO Output Rises in July

KUALA LUMPUR - Sep 16/08 - SNS -- Crude palm oil (CPO) production in Malaysia rose 6.2% to 1.6 million metric tons (MT) in July, according to the Malaysian Palm Oil Board (MPOB).

Output in Peninsular Malaysia's production rose 7.6% while East Malaysia's output increased by 4.3%. Compared to July 2007, output during July 2008 was 15% higher. The strong recovery of palms from biological stress in the past two years is reflected in the strong increase in yields.

Commenting on the production data, the U.S. agricultural attache for the country said they expect "CPO output to further increase to 5 million MT during the Jul-Sep quarter, bringing total output to reach 17.9 million MT in 2007-08."

In line with the decline in crude petroleum and soyoil prices, palm oil prices experienced a sharp drop during the month of August. The rising PO stock level and weaker exports in July contributed to the decline.

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