El Nino and tree stress may cap CPO output

What a severe El Nino can do to a lush land. This picture shows a man crossing the reservoir of Las Canoas, 60 km from Managua, on his way home on July 30, 2014. - AFP

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 oil prices in Malaysia have tumbled more than 15% this year, due in part to a bumper harvest of rival soybeans.