reuters/test/14892

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.