Palm oil production in Indonesia, the world’s largest supplier, will probably climb for the first time since September, as yields recover from a seasonal decline.
Prices in Kuala Lumpur tumbled to a one-month low.
Output may increase 11 percent to 2.1 million metric tons in March from the previous month, according to the median of five industry estimates compiled by Bloomberg.
Exports expanded 4.4 percent to 1.65 million tons, while inventories were unchanged at 2.1 million tons, the survey showed.
Futures jumped to the highest level since September 2012 this month on concern dry weather in Indonesia and Malaysia would cut production in the world’s top growers this year.
Output in Indonesia fell last year for the first time since 1998, reducing supplies of the commodity used in everything from Nestle SA instant noodles to Unilever soaps. Yields are lowest in January and February because of growing cycles.
“Production typically increases in March from February,” said Joelianto, a Jakarta-based trader at PT Sinar Mas Agro Resources and Technology, a unit of Golden Agri-Resources Ltd.
“The weather should be improving too.”
North and central parts of Sumatra are forecast to receive 20 millimeters to 100 millimeters of rain per day between March 18 and 24, according to the Jakarta-based Meteorology, Climatology and Geophysics Agency.
Drought Impact
Palm dropped 1.6 percent to 2,729 ringgit ($825) a ton on the Bursa Malaysia Derivatives today, the lowest price at close since February 19.
Futures reached 2,916 ringgit on March 11, the highest since September 2012.
The percentage change for exports is derived from the February figure from the Indonesian Palm Oil Association, known as Gapki. Comparisons for output and reserves are based on earlier surveys.
Prices will probably touch 3,000 ringgit in April, Rabobank International analysts, including Luke Chandler in Sydney, said in a report e-mailed yesterday.
However, the prospect of improved weather conditions may limit the upside, said the bank, which forecasts futures will average 2,800 ringgit in the second quarter and 2,700 ringgit in the three months through December.
The dry season started early in January and February in parts of Sumatra with no rain in Riau for two months, the state weather office said March 4.
Riau and North Sumatra represent about 60 percent of output, according to Gapki. While analysts expect the drought to start curbing production from the fourth quarter, Derom Bangun, chairman of the Indonesian Palm Oil Board, said the dry spell also disrupted harvesting in February.
Production in Indonesia fell 1.9 percent to 26 million tons in 2013 from a year earlier, according to Gapki. The country increased output fivefold since the last drop in 1998, U.S. Department of Agriculture data show.
Bloomberg
Sat Mar 22 2014
Mesyuarat perundingan Enam Pihak Arab bincangkan perkembangan di Gaza
Mesyuarat perundingan Jawatankuasa Enam Pihak Arab itu membincangkan perkembangan serangan Israel ke atas Semenanjung Gaza.
Chegubard didakwa di Mahkamah Sesyen KL esok - Peguam
Badrul Hisham Shaharin atau dikenali Chegubard akan didakwa di Mahkamah Sesyen Kuala Lumpur esok atas pertuduhan memfitnah dan menghasut.
Pulau Pinang, kerajaan pusat bekerjasama tarik pelaburan semikonduktor
Kerajaan Pulau Pinang akan bekerjasama dengan Kerajaan Persekutuan untuk meneruskan usaha menarik pelaburan dalam sektor semikonduktor, termasuk segmen reka bentuk litar bersepadu (IC) di negeri itu.
Rakyat Malaysia di Jordan jadi duta produk PMKS negara
Menteri Pembangunan Usahawan dan Koperasi Datuk Ewon Benedick menyarankan rakyat Malaysia yang menetap di Jordan supaya memainkan peranan sebagai “duta” untuk mempromosikan produk perusahaan mikro kecil dan sederhana (PMKS) SERTA koperasi negara.
Mohamed Khaled tiba di Indonesia, dijadual bertemu Prabowo
Menteri Pertahanan Datuk Seri Mohamed Khaled Nordin tiba di Jakarta hari ini untuk lawatan kerja rasmi sulung beliau ke Indonesia sejak memegang jawatan itu.
SPRM mohon maklumat dari Jerman
Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) memohon maklumat terkini daripada pihak berkuasa Jerman mengenai dana bon 1Malaysia Development Berhad (1MDB) yang dipercayai digunakan untuk membeli kereta mewah di negara itu pada 26 Okt 2022.
SPRM siasat pemimpin kanan di utara tanah air
Seorang pemimpin kanan di utara tanah air disiasat Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) kerana disyaki melantik beberapa syarikat yang mempunyai kepentingan dengannya membabitkan beberapa projek pembekalan melibatkan peruntukan kira-kira RM300,000.
Kembangkan kandungan tempatan melalui AI
Menurut Setiausaha Agung Organisasi Kerjasama Digital (DCO) Deemah Al Yahya, terdapat 2.7 peratus daripada penduduk dunia tidak berhubung malah tidak mempunyai sambungan asas internet. Beliau turut berkata infrastruktur pengkomputeran setiap negara perlu mempunyai kemampuan untuk mengembangkan kandungan tempatan khususnya yang melibatkan penggunaan AI.
AI tidak dapat ganti guru
Menteri Pendidikan Rwanda, Gaspard Twagirayezu berkata kepesatan teknologi AI dalam pendidikan tidak dapat menggantikan guru malah membantu guru dalam menyediakan bahan pengajaran yang bermanfaat kepada pelajar.
Berita tempatan pilihan sepanjang hari ini
Berikut adalah berita yang paling menjadi tumpuan sepanjang Ahad, 28 April 2024.
Kejatuhan eksport minyak sawit menjejaskan niaga hadapan MSM
Kontrak niaga hadapan minyak sawit mentah (MSM) di Bursa Malaysia Derivatives (BMD) susut hari ini selepas anggaran eksport menunjukkan aliran menurun.
Niaga hadapan MSM ditutup rendah
jangkaan pengeluaran MSM meningkat pada minggu-minggu akan datang turut memberi tekanan kepada penurunan harga.
Harga minyak sawit mentah terjejas susulan kebimbangan terhadap permintaan yang lemah
Kontrak niaga hadapan minyak sawit mentah (MSM) di Bursa Malaysia Derivatives ditutup lebih rendah susulan kebimbangan terhadap permintaan yang lemah, menurut seorang peniaga.
Niaga hadapan minyak sawit dijangka dalam aliran rendah minggu ini
Kontrak niaga hadapan minyak sawit mentah (MSM) di Bursa Malaysia Derivatives dijangka berada dalam aliran rendah minggu ini.
Harga minyak sawit dijangka bertambah baik - Teresa Kok
Menteri Industri Utama Teresa Kok Suh Sim yakin harga minyak sawit akan bertambah baik dalam tempoh beberapa bulan akan datang.
Harga kontrak MSM dijangka turun
Kontrak hadapan minyak sawit mentah (MSM) di Bursa Malaysia Derivatives, yang mengakhiri dagangan minggu ini pada paras tinggi, mungkin turun minggu depan.