KUALA LUMPUR, Jan 19 — Malaysia’s export of crude palm oil in 2014 slipped to 17.27 million tonnes, worth RM44.43 billion, against an offtake of 18.14 million tonnes, valued at RM45.26 million, registered in 2013.

Output rose to 19.67 million tonnes in 2014 from 19.22 million produced in 2013, said the Malaysian Palm Oil Board (MPOB).

Chairman Datuk AR Wan Khair-il Anuar Wan Ahmad said exports this year was expected to hover around that of last year’s level.

“It will depend on demand from importing countries,” he told Bernama when commenting on the latest export figures.

Meanwhile, Phillip Futures Sdn Bhd said demand for CPO was likely to record a marginal increase only in 2015 in view of weaker demand.

Its Senior Derivatives Product Specialist David Ng said demand for the tropical oil would be largely affected by the expected slowdown in economic growth in major importing countries like China and India.

“And to aggravate the situation, soybean oil prices are also weak and this will actually drive importers to shift from palm oil to soyaoil,” he told Bernama on the sidelines of the “Palm Oil Economic Review and Outlook Seminar 2015” here today.

Ng expected palm oil production to hover between 20.3 million tonnes and 20.9 million tonnes in 2015, driven by yields in oil palm matured areas.

While the ringgit’s depreciation provided a boost for palm oil exports, it would only provide a temporary boost for the tropical oil, he added.

Industry players also expect CPO prices to remain volatile this year due to the uncertainty in movements of variables such as exchange rate fluctuations and prices of Brent crude oil and soybean oil.

Earlier, Sabah-based Ganling Sdn Bhd Director Ling Ah Hong told seminar participants that there would not be any major weather catalyst that would spur a price spike this year.

The threat of a moderate or severe El Nino, which emerged in 2014, had since receded, he added. — Bernama