| MALAYSIA MAY NOT MEET 1987 OIL PALM TARGET | |
| Malaysia is unlikely to meet its | |
| targeted output of five mln tonnes of oil palm in calendar | |
| 1987, oil palm growers told Reuters. | |
| Output in 1987 is expected to reach around 4.5 mln tonnes, | |
| unchanged from 1986, because of drought, low use of fertiliser | |
| and overstressed palms, they said. | |
| The growers were asked for their reaction to an Oil World | |
| newsletter report that Malaysia's oil palm output is likely to | |
| drop sharply this year. | |
| Palm oil now sells at around 700 ringgit a tonne, or about | |
| 115 ringgit less than soybean oil, but Malaysia must sell more | |
| palm oil to prevent a stock buildup that could damage the | |
| industry, a leading grower told Reuters. | |
| The country's palm oil stocks now total some 500,000 tonnes | |
| against about 800,000 last March, the growers said. | |
| The growers expect palm oil prices to ease later this year | |
| due to pressure from South American and U.S. Soybean output. | |
| The current South American oilseed harvest, mainly soybean, | |
| is likely to be around 25.7 mln tonnes against the previous | |
| 21.7 mln tonne crop, they said. | |
| In addition, new U.S. Soybean plantings are also expected | |
| to enter the market around November when Malaysian palm oil | |
| output peaks. | |
| They said new planting of palms is also likely to slow, | |
| with some 50,000 hectares expected to be planted with new trees | |
| against 100,000 in 1986, although the effects of this reduction | |
| will not be felt for about another three years. | |