28 March 2011 07:12 [Source: ICIS news]
SINGAPORE (ICIS)--Malaysia’s February crude palm oil (CPO) production increased by 36,512 tonnes or 3.33% month on month in February because of better harvest yields, market sources said on Monday.
The country produced 1,094,473 tonnes of CPO in February, compared with 1,057,961 tonnes in January, according to statistics from the Malaysian Palm Oil Board.
The spike in CPO production was because of better-yielding fruits, as the bad weather conditions that had plagued Malaysia’s main palm-growing states of Sabah and Johor had cleared up, market sources said.
“The spike in CPO production is a welcome relief to the industry, as it means that there is more supply and no reason for prices to remain firm,” a Malaysian palm oil buyer said.
“With news of more CPO supply in March, prices have come down slightly,” added a palm oil trader in Malaysia.
However, the country’s CPO exports in February were down by 103,965 tonnes or 9.33% from January, the statistics showed.
Market players told ICIS this was because most buyers were covered in March.
“Most buyers bought cargoes in end-January and early February when prices were on an upward trend and thus had little requirement towards the end of February. Thus, exports have dipped slightly for the month of February.”
CPO prices were trading at Malaysian Ringgit (M$) 3,320/tonne ($1,096/tonne) at midday Monday on the Bursa Malaysia, down by M$240/tonne from the same period a month earlier.
($1 = M$3.03)
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