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M'sia March palmoil output up 43 pct

KUALA LUMPUR: Malaysia's palmoil output in March is estimated to have risen by 43 percent to 610,000 tonnes over February, and against his previous estimate of a 40.5 percent rise, private forecaster, Ivan Wong said on Friday.

He estimated palmoil stocks at end-March at 680,000 tonnes compared with 723,910 tonnes at end-February.

Wong forecast exports in 1996 to reach 6.63 million tonnes against 6.51 million tonnes in 1995.

Wong said the modest growth in exports in 1996 is likely to be contributed by increased offtake by the European Union, India. Pakistan, Korea, Egypt and many smaller importing countries.

But he expects another big contraction in offtake by China this year, to around 900,000 tonnes as against 1.18 million tonnes in 1995 and nearly 1.4 million tonnes in 1994.

He said export growth should be positive in the second half of 1996 in line with expansion in crude palm oil production.

"If palmoil offtake by China remained slack as compared with huge amounts imported in the 18 months to June 1995, Malaysia could still end up with more than 1.1 million tonnes of palm oil stocks by end December 1996 against 860,000 at end-December 1995," Wong said.

"However, this situation could be averted if palmoil prices are attractive and competitive," he said.

Malaysia has to be wary of Indonesian exports competition in the second half of this year, Wong added.

Malaysia crude palmoil supply-demand estimate/projection as of April 12, 1996.-Reuter