KUALA LUMPUR: Malaysia's palm oil prices are seen averaging 2,659 ringgit ($686) a tonne in 2018, industry body the Malaysian Palm Oil Council (MPOC) forecast on Monday.
The average price last year was 2,807 ringgit.
Output in Malaysia, the world's second largest palm oil producer, is also seen rising to 20.5 million tonnes this year, from 19.9 million tonnes in 2017, recovering after a crop damaging El Nino weather pattern "which lagged in the first and second quarters of 2017," MPOC said in a presentation posted online.
Growth in mature tree areas and high yields supported by a favourable start to the rainy season are also primary factors for the production gains, MPOC said.
Malaysia's palm oil exports in 2018 are also expected to rise 8.5 percent to 17.9 million tonnes, MPOC forecast, versus 16.5 million tonnes last year.
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