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Malaysian palm oil output seen dropping by 5-7.5 pct in 2016 -IOI Group
October 12, 2016 / 4:51 AM / a year ago

Malaysian palm oil output seen dropping by 5-7.5 pct in 2016 -IOI Group

KUALA LUMPUR, Oct 12 (Reuters) - 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 tonnes.

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

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