Malaysia's Felda Global Ventures Berhad, the world's third largest palm plantations operator, said its palm oil output would likely drop 17 percent this year as dry conditions from the El Nino weather pattern hit crops.
A broad decline in harvests around the key-producing region of Southeast Asia will boost crude palm oil prices by up to 10 percent by August and then by as much as 20 percent further down the road, Felda's newly-appointed chief executive Zakaria Arshad said on Monday.
"Lower yields are due to the El Nino effect," Zakaria said at a media briefing. The El Nino weather phenomenon dries fields across swathes of Asia.
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