Palm Oil Output Growth May Slow in 2011 on El Nino, Ganling Says

World palm oil output may grow at a below-normal rate next year because the warmer, drier El Nino weather pattern affecting Malaysia and Indonesia will likely reduce yields, a Malaysia-based industry adviser said.

Production will rise at a rate of 4 percent instead of 6 percent to 8 percent, or an increase of 1.6 million metric tons, Ah Hong Ling, director of plantation investment company Ganling Sdn Bhn, said in slides prepared to be delivered at a conference in Guangzhou today.