Higher palm oil output to cap prices, depending on El Nino

KUALA LUMPUR: Palm oil production in top growers Indonesia and Malaysia could pick up in the final months of this year, keeping a lid on prices, although some in the market are still worried about a potential El Nino plus tree stress in Malaysia.

Crude palm prices in Malaysia have tumbled more than 15 percent this year, due in part to a bumper harvest of rival soybeans. On Monday the benchmark October contract was down 1.1 percent at RM2,260 ($706) per tonne at midday.