Malaysia’s palm oil output is expected to drop to 19.8 million tonnes in 2018 as compared to 19.92 million tonnes recorded in 2017 due to lower yields, said Oil World executive director Thomas Mielke. "Yield trend is declining. There was a strong recovery seen in production last year and the first four to five months of this year, but it is temporary,” Mielke said during his presentation at the Malaysian Palm Oil Trade Fair and Seminar (POTS). According to Mielke, Malaysian palm oil production is expected to increase to 20.4 million tonnes in 2019, due to high inventory numbers and the fact that the country was not badly hit by El Nino season in 2018. Globally, Mielke said palm oil production is expected to rise to 70.22 million tonne in 2018 from 67.94 million tonne in 2017, and increase further to 72.69 million tonne next year. Meanwhile, Mielke said palm oil prices is expected to pick up moderately to RM2,500 a tonne in the next six months. He said the current weakness in prices was due to lower than expected imports globally.

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New Straits Times