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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

22/09/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Dow Jones

CATEGORY

HEADLINE

Palmis: Malaysia Sep Palm Oil Output At 1.410M-1.4
21/09/04 - KUALA LUMPUR (Dow Jones)--Private surveyor Palmis ManagementBhd. Tuesday estimated Malaysia's September crude palm oil output at 1.410million to 1.415 million metric tons, up from the 1.32 million tonsproduced in August, traders familiar with the latest Palmis report said.According to traders who obtained the data, Palmis estimated Septemberpalm oil exports at 1.220 million to 1.225 million tons, little changedfrom 1.22 million tons in August.Palmis pegged end-September stocks at 1.33 million to 1.34 milliontons, up from 1.26 million tons at end-August, traders said.Palmis is the only private palm oil crop forecaster in Malaysia, andits production, export and stock forecasts are closely watched by themarket.Traders said the report had little immediate impact on prices, as itdidn't provide any clear guidance on the outlook for supply and demand."Exports were flat (on month), which is kind of a surprise, given thefigures. The production was also a bit of a surprise because (Palmis) putit at 1.4 million. The market feels this is a bit on the low side," atrader said.Traders said market expectations are for exports to show strong growthin September, contrary to Palmis' forecast.The bullish export outlook is underpinned by estimates issued thisweek by cargo surveyors Intertek Testing Services and SGS (Malaysia) Bhd.The surveyors estimated a surge in exports of as much as 22% on monthin the first 25 days of September.Full-month export figures from the cargo surveyors are dueend-September.Palm oil output in September is expected to be much stronger than inAugust, as production is usually at its peak at this time of the year,traders said.There has been talk of production of around 1.5 million tons inSeptember, traders said.Traders said with no bullish leads from Palmis, palm oil prices arelikely to remain under pressure because of the bearish global edible oilproduction outlook.Global edible oil prices have been on the decline in recent weeks onexpectations of a bumper soybean crop in the U.S.At 0739 GMT, the benchmark December CPO contract on the Bursa MalaysiaDerivatives was at 1,417 ringgit ($1=MYR3.8) a ton, down MYR12 fromMonday.