"Palm oil production in Malaysia increases"

Palm oil production in Malaysia increases
Mumbai: Palm oil production in Malaysia is expected to reach 19.4-19.5 million tonnes in the year 2017. This production was 17.2 million tonnes last year. The improvement in palm oil production in Malaysia's climate has been increasing. Malaysian Palm Oil Council Chief Executive Officer Kalyan Sundaram gave this information. They are here to take part in Globe Oil meet.

They said that this year there is no El Nino in Malaysia and the weather is favorable for Palm trees and Fruit is better. Let Malaysia be the second largest producer of oil in the world after Indonesia. Palm farming was affected due to al Niño in Malaysia last year, but this year the weather is perfectly suited. He said that palm oil prices do not show major changes in the coming months and there is no hope of major changes in prices of alternative oils like soybean, rapeseed, sunflower and groundnut oil.

On the impact of recent import duty on CPO and RBD palm oil by India, he said that this does not seem to affect India's imports and domestic demand is increasing enough. Explain that India is the largest importer of palm oil in the world and imports 3 million tonnes of palm oil from Malaysia.

Increase in palm oil stock by increasing production

Kuala Lumpur In Malaysia, the stock of palm oil is expected to grow in August and it is expected to reach around 2 million tonnes. This will be the second consecutive month, when the stock of palm oil is rising in Malaysia.

According to a survey of a foreign news agency, the Palm Oil Benchmark futures have been rising for the last few months and it is around 2760 ringgit per tonne yesterday. According to the survey, the stock of palm oil at the end of August is expected to increase by 6.5 percent to 1.9 million tonnes compared to July. This stock will be the highest since March 2016. But in August, production of palm oil is likely to fall by 1.4 per cent to 1.8 million tonnes from the July production. But businessmen say that it can cross the output of 2.0 million tonnes for the first time since October 2015. Continuous production patterns are increasing since July.

Explain that due to El Nino in Malaysia in 2015, the palm crop has suffered a lot and production has declined. However, El Nino is no longer but looks a partial effect. According to this survey, the export of palm oil in August is expected to rise by 1.6 per cent to 14.2 lakh tonnes. Meanwhile, considering the festival demand in India and China, Pama Oil is likely to get support in the coming days. The domestic consumption of Malaysia is expected to be 347,458 tonnes in August. Let the Malaysian Palm Oil Board release the official data on September 11.

The average price of CPO is estimated to be 2600 ringgit

Kuala Lumpur CIMB Equities Research has kept the average price of crude palm oil (CPO) for the year 2017 to 2600 ringgit per ton. CIMB has said in its research report that if the supply of palm oil does not improve, then the CPO price can go up beyond its estimates. The availability of laborers on the supply of palm and also the impact of weather will be important. It should also be seen that if the supply of palm oil remains weak, then the supply of other competitive edible oils remains.

In its report released in September this organization had projected CPI prices to be 2400-2700 ringgit per tonne. Now again it has maintained its estimate. CIMB has surveyed 19 plantation areas and in August 2017, Malaysian CPO production has decreased by one per cent to 1.81 million tonnes. Similarly, in August compared to the month of July, palm oil exports have declined by 0.4 per cent. However, in the end of August, the inventory of palm oil has increased by 13 per cent to 2.06 million tonnes.

Officials of Palm Oil will be released on September 11. CIMB Research has projected the production of Palm Oil by 12 per cent in August 2017 as compared to August.