KUALA LUMPUR Oct 12 Malaysian palm oil
production is likely to drop by 5 to 7.5 percent in 2016 from
the previous year due to an El Nino weather event, the chief
executive of planter IOI Group said on Wednesday.
Output in Malaysia, the world's No. 2 palm producer, is seen
sliding by 1 million-1.5 million tonnes, said Lee Yeow Chor, who
is also the chair of the Malaysian Palm Oil Council.
Malaysian palm oil production last year was 19.96 million
An El Nino weather pattern typically brings scorching heat
across Southeast Asia, and knock-on effects from last year's
event has lowered palm output in top growers Indonesia and
Malaysia this year.
Lee also said output in top producer Indonesia has gone down
"substantially" in the first half of the year, and that output
for the full year will be below last year's levels.
(Reporting by Emily Chow; Editing by Tom Hogue)