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Malaysia, the biggest oil palm grower, could see a new record for palm oil production this month, with output expected to be 5.7 percent above August, a Reuters survey showed on Thursday.
Stocks of both crude and refined palm oil left in the market at end-September could be 6.5 percent higher than the volume from end-August, according to the survey that polled five leading plantation houses in the country.
"The production in the east is really going wild," said Christopher Cheri, head of marketing at Kwantas Corp, a plantation firm on the east Malaysian State of Sabah on Borneo Island.
Sabah and Sawara, another state on Borneo Island, account for about 40 percent of the 14 million tonnes of palm oil Malaysia produces a year.
"The rains are too good in East Malaysia this time," said Chai, who regularly contributes to the Reuters survey.
"I think for Sabah alone, the production is up at least 15 percent from last time." Analysts from the five plantation firms estimated output for September at a median of 1.44 million tonnes, up 5.7 percent from August's record of 1,362,777 tonnes.

Copyright Reuters, 2005

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