Malaysia’s palm oil output is likely to be lower in the February-March period as floods in Sabah state have made transportation and harvesting of palm fruits difficult, and this will boost palm oil prices as exports improve, Lee Yeow Chor, group executive director at IOI Corp. (1961.KU), said Tuesday.
Bad weather conditions in the top oil palm producing state of Sabah "may have multiplier effect on palm oil," Lee said on the sidelines of an industry conference.
Lee, who is also chairman of the Malaysian Palm Oil Council, said palm oil prices may rise to MYR2,500-MYR2,700 levels in the next three months. He expects palm oil exports to improve in 2010 on rising demand from China and India–both major vegetable oil consumers–as well as from the African continent and Bangladesh.
As exports increase amid lower output, palm oil inventories may ease from December's level of 2.24 million tons–a 13-month high–which is bullish for prices, analysts said.
Cargo surveyors estimated January exports of palm oil had risen more than 20% on month to 1.48 million to 1.50 million tons.
Benchmark BMD April CPO futures were last trading MYR9 lower at MYR2,436 a metric ton.
-By Shie-Lynn Lim, Dow Jones Newswires; +60320261233; shie-lynn.lim@dowjones.com
(END) Dow Jones Newswires
February 02, 2010 02:39 ET (07:39 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
More Recent Palm Oil News 
- Crude Palm Oil Futures End Lower On Profit-Taking
- Indonesia to export only 50% of CPO output by 2015
- Reject efforts to limit growth of oil palm estates in Malaysia
- Crude Palm Oil Ends Up On Record Low End-Month Stocks
- Crude Palm Oil Prices Likely Under Pressure If Crude Drops -Fry
- Malaysia Feb CPO Output 1.16 Mln Tons; Down 12.5% On Month -MPOB
- Palm Oil Demand to Rise Faster Than Production, TransGraph Says
- CME US Dollar Crude Palm Oil Futures Specifications
- Crude Palm Oil Ends Down On Weak Crude Oil Futures
- CME Group Announces Launch of Dollar-Denominated Crude Palm Oil Futures
- Palm Oil Players Prefer Malaysia For Trading
- Palm Oil Industry Needs To Increase Yield Through Research And Innovation
- Crude Palm Oil Ends Up; Market Expects Bullish Forecasts
- Crude Palm Oil Ends Down; Choppy Trade; Outlook Awaited
- Crude Palm Oil Ends Up; Bullish Outlook, Short Covering
PRO Palm Oil Live Market News
- CBOT Soy Outlook: Seen Firm; Dollar Weakness, Oversold
- Indian Edible Oil Prices Mixed; High Rapeseed Arrivals Weigh
- European Veg Oil AM Palm Oil & Lauric Oil Prices- Mar 12
- European Veg Oil AM Soft Oil Prices- Mar 12
- India Commodity Prices Including Palm Oil – Agriculture
- Asian Crude Palm Oil Ends Down; Weak Cash Demand, Long Liquidation
- INTERVIEW: Biomaza, Lipochem To Build $10 Mln Biodiesel Plant
- Malaysian Cash Market Prices For Palm Oil – March 12
- Astra Agro Withdraws 5,250 Tons Crude Palm Oil (CPO) Offered Fri; Bids Too Low
- PT KPB Withdraws 3,500 Tons Crude Palm Oil (CPO) Offered Fri Due To Low Bids
- India 2009-10 Vegetable Oil Import Likely Up At 9 Mln Tons – Official
- India STC Tenders To Import 12,000-18,000 Tons RBD Palm Olein
- *India STC Tenders To Import 12,000-18,000 Tons RBD Palm Olein
- China Soybean Futures Settle Down With Metals; Rate Hike Worries
- Malaysia Cash Palm Down On BMD Fall; Demand Weak