Malaysian palm oil output seen slumping more than expected

Kuala Lumpur

MALAYSIA's palm oil production will slump more than previously forecast as the lingering effects of El Nino curb output in the world's second-biggest producer, according to Godrej International Ltd's Dorab Mistry.

Production will drop by two million tonnes in the year through September, Mr Mistry said in remarks prepared for a conference on Monday in Beijing. That compares with a 1.5 million tonne decline predicted earlier this month. Malaysian output will be "well below" 19 million tonnes this calendar year, while it will total 31 million tonnes in top grower Indonesia, he said.