Hamburg-based oilseeds analysts Oil World said it has raised its estimate of Malaysia's October 2005/September 2006 season palm oil output to 15.3 million tonnes, up by 400,000 tonnes from its previous forecast in April.
This would be up 100,000 tonnes from 2004/05 output. Lower production had been forecast this season because of expected weaker yields.
"The pronounced seasonal recovery of Malaysian production in February, March and April suggests that the year-on-year reductions in yields were shorter than expected and lasted only from June 2005 until January 2006," Oil World said. "Current indications point to ongoing seasonally high productivity of palm trees in the near term. For April/September 2006 we estimate Malaysian output of crude palm oil at 8.3 million tonnes, up six percent from a year earlier."