Tuesday, 20 January 2015

Fundamental News On Palm Oil Projection For Year 2015

Crude palm oil production in Indonesia, the world's biggest grower, is expected to rise to 32.5 million tonnes in 2015, a senior official from a leading industry association said on Monday...

Palm oil futures could drop this year to their lowest level since February 2009 and may be volatile because uncertainty in the global economy causes prices in commodity markets to fluctuate, an official from the Malaysian Palm Oil Board said on Monday.

Malaysian palm oil prices, which set the tone for global prices, are expected to trade between 1,820 ringgit ($504) and 2,750 ringgit in 2015, against earlier estimates of 2,300-2,500 ringgit, said Ramli Abdullah, head of the MPOB's economic unit.

Ramli told an industry meeting in Kuala Lumpur that output in Malaysia, the world's second-largest palm grower, was expected to rise to a record 20.09 million tonnes in 2015, lower than his earlier prediction of 20.5 million tonnes in October.

Malaysia churned out 19.67 million tonnes of crude palm oil in 2014. This year's output, however, may be crimped by the delayed effect of severe monsoon flooding in December...

Cameroon, Africa’s third-biggest palm-oil producer, plans to start using higher-yielding seeds to help raise production by 26 percent over the next three years, Agriculture Minister Essimi Menye said. 

The new seeds will be planted over an additional 30,000 hectares (74,141 acres) of land and are expected to boost production to 290,000 metric tons a year, compared with 230,000 tons now, he said in an interview on Monday in the capital, Yaounde.

About “10,000 additional hectares of plantations will be planted each year,” he said. The seeds will be produced by the Institute of Agricultural Research for Development and distributed for free to farmers, Menye said.

Source: The Egde Markets, Bloomberg Businessweek