Malaysian palm oil output is expected to fall around 11 percent to 1.025 million tonnes in February, pulled down by a shorter working month and a seasonal drop in production, a Reuters survey showed on Monday. Production in January totalled 1,151,956 tonnes. The range of forecasts for February output from five local plantation firms was from 990,682 tonnes to 1,059,800 tonnes.

Tapering yields at this time of the year, unusually dry weather with temperatures reaching nearly 40 degrees Celcius and at least seven fewer working days than January were factors that would cut output, they said.

"The downside in production is definitely more than 10 percent given the long holidays we've had this month," said Christopher Chai, general manager of marketing at Kwantas Corp, a leading oil palm planter in the east Malaysian state of Sabah.

There were four holidays this month to mark the lunar and Muslim new years and February is three days shorter than January.

The median estimate for exports in February was 1.05 million tonnes, up 5.5 percent from January's 995,345 tonnes.

Imports from neighbouring Indonesia to supplement local refiners' needs were estimated at 40,000 tonnes.

Copyright Reuters, 2005