Astra CPO output ups 15%

Plantation company PT Astra Agro Lestari (AALI) Tbk reported 15% surge in CPO output for June 2009 to 104,100 tons, but its first half 2009 output inched up by 1.1% only. 

Astra Agro in its July 2009 Investor Bulletin wrote that June 2009 output is significantly higher than June 2008 by 23%. For the first six months, total CPO output is 499,444 tons, increased 1.1% from the same period last year. Palm kernel oil (PKO) output increased 2% in the same period.

Indonesia is the largest CPO producer in the world. Malaysia's output in the period of January-May 2009 declined 3.9% and is projected to reach 17.8 million tons this year, inched up slightly by 0.6%. Malaysia is the second largest producer with about 39.6% of world production.

CPO futures contracts in Malaysia Derivative Exchanges dropped to RM2002 per ton on Wednesday. The price is 30% above the bottom in December 2008 and about 30% below the recent peaks (May 2009). This morning, CPO futures pointed to lower opening with bids for October-December contracts as low as RM1806 per ton.

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