PALM OIL PRODUCTION TO GROW BY 5-10 PCT IN 2010

KUALA LUMPUR, Jan 12 (Bernama) -- Crude palm oil production is expected to
grow by 5-10 per cent in 2010, said ECM Libra Investment Research.

However, the production in the near term is expected to ease amid lower
output cycle, it said in its research note Tuesday.

The industry achieved some 17.6 million metric tonne in production last
year, down by one per cent from 2009's output of 17.7 million metric tonnes.

"(Hence), there is no shortage of crude palm oil in the industry," it said.

On price, ECM Libra said that the current crude palm oil prices were not
reflecting the fundamentals but rather just sentiments on commodities and was
also led by the decline in the U.S dollar.

"As such, it may be the case that crude palm oil prices beyond RM2,500 per
tonne will not be sustainable into February or March when the typical yearly
production down-cycle ends," he added.
-- BERNAMA


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