18 June 2010 10:58 [Source: ICIS news]
SINGAPORE (ICIS news)--Palm oil production is likely to recover in 2011 as the La Nina weather pattern brings unusually wet weather to ?xml:namespace>
“Periods of increased rainfall are generally positive for palm oil fruit production as palm fruit usually requires a lot of water to flourish,” a trader said.
However, some market participants said they believed that while wetter weather was essentially good for the palm oil fruit cultivation, it could hurt palm oil values as more supplies could put downward price pressures on the commodity.
On the other hand, some market participants welcomed higher palm oil yield as they said it meant that more stocks could be exported to overseas markets.
According to the Malaysian Palm Oil Board, the fresh fruit bunch (ffb) yield, which is a measurement of palm oil yield, fell by 0.02 tonnes per hectare from1.48 tonne per hectare in April to 1.46 tonne per hectare in May.
Some producers attributed this fall in yield to the El Nino weather pattern.
A company source from PT Astra Agro Lestari -
La Niña is characterized by unusually cold ocean temperatures in the Equatorial Pacific, compared to El Niño, which is characterized by unusually warm ocean temperatures in the Equatorial Pacific, creating opposite weather effects.
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