Porla on Thursday released its report on December production, closing stocks and exports, giving a glimpse into the industry's performance in 1999. It said production for December was at 9,05,994 tonnes. This when added to the output in the first 11 months of 1999, totalled 10.55 million tonnes, up 27 per cent from 1998's 8.32 million tonnes.

Exports for December were at 8,67,242 tonnes, Porla said,bringing last year's total to 8.79 million tonnes when added to exports between January and November. In 1998, exports stood at 7.42 million tonnes. ``This means exports for the whole of 1999 have only grown 18 per cent, while production grew nine per cent more,'' said a palm oil futures trader at Pacific Interlink Sdn Bhd, Nakul Rastogi.

Rastogi points to something that he says worries him more- a closing stock of 1.18 million tonnes in December 1999 compared to 8,25,604 tonnes in December 1998.``This means we're carrying forward more oil this year.''He said if last year's production was maintained, Malaysia may well have more than 12 million tonnes of palm oil in 2000 against a backdrop of deteriorating demand. The palm oil market has become increasingly concerned over weakening exports since last month.

Cargo surveyor Societe Generale de Surveillance (SGS), whose figures are closely watched by the industry, said that the exports fell to 4,20,459 tonnes in the first 20 days of January compared to 5,94,847 in the same period of December.

-- (Reuters)