El Nino will cause reduction of output 12% palm oil in Malaysia
International market: El Nino will cause reduction of output 12% palm oil in Malaysia
It is said by IOS Group CEO Jingshen Li that El Nino will cause reduction of output 12% palm oil in Malaysia, if it is as seriours as El Nino which happened in 1997/98, the palm oil in Malaysia will reduce 15%.
Several global meteorological agencies have issued the warning report of El Nino this year. The Goldman Sachs Group Inc said that, the El Nino effect on Cocoa, Coffee, Sugar and palm oil is more significant.
Jingshen Li said, El Nino effect will not occurs soon in palm oil in Malaysia, but it will continusly reflect in a period. At that moment, the reduction of palm oil in Malaysia will effect on the prices.
Alan Lim, the Analyst who is from Kenanga Investment Bank, he mentioned in the report on 6th June, if the El Nino is really appeared, the palm oil in Malaysia may be increased sharply, it will break through 3000 ringgit Malaysia/ton.
Palm fruit plant
The Palm trees plantation of consutant agent, Ganling Sdn, the Director Ling Ah Hong said that, if it occurs medium degree El Nino, the palm oil in Malaysia may stablize at 19,200,000 tons in n2014, but in 2015, it will reduce to 18,700,000 tons.
We need to point out that, although the palm trees plantation enterprises are very vigilant the El Nino effects, the current season the palm oil in Malaysia is increased , the stock is also increasd. The MPOB issued monthly report on Tuesday shows that, the palm oil stock was 1,840,000 tons in the end of 184tons, it was increased 4.2% compared to the stock of April 1,770,000 tons. The crude palm oil production was about 1,660,000 tons in May, compared to the April production 1,560,000 tons , it is increased 6.5%.