2009 palm oil output will only rise marginally

Malaysia's 2009 palm oil output will only rise marginally following years of rapid growth, Oil World said. Malaysia will produce 17.6m tonnes of palm oil in 2009 against an estimated 17.56m tonnes in 2008 and 15.82m tonnes in 2007. "The palm tree biological yield cycle will likely decline further in early 2009, curbing palm oil production in Malaysia," it said. "The near-term palm oil supply fundamentals are bearish, but medium-term prospects for 2009 point to a tightening of supply fundamentals and a decline in palm oil stocks." (BT)