El Nino Risk Dents World Palm Oil Supply Outlook: Southeast Asia
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A moderate El Nino weather pattern would reduce palm oil output by as much as 12 percent in Malaysia, the world’s second-largest producer, IOI Corp. Chief Executive Officer Lee Yeow Chor said.
Prices may advance to a range of 2,650 ringgit ($827) a metric ton to 2,850 ringgit from August if the event occurs, Lee said in an interview in Kuala Lumpur. Futures ended at an eight-month low of 2,379 ringgit today. An El Nino pattern as severe as in 1997-1998 may cut production by as much as 15 percent, Lee said, without specifying a period for the decline.