Tuesday, June 16, 2009

Breaking News-RTRS-INTERVIEW-Malaysia palm output to stay weak for next 2 yrs

KUALA LUMPUR, June 16 (Reuters) - Palm oil output growth in Malaysia will stay weak for the next two years because an aggressive replanting scheme and hot weather will aggravate yield stress in oil palms, an industry regulator said on Tuesday.
But the extent of output softening hinges on the severity of the brewing El Nino weather condition, which has previously brought droughts to the world's No. 2 producer of the vegetable oil, Sabri Ahmad, chairman of the Malaysian Palm Oil Board (MPOB), said.