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DekelOil palm oil output slumps on lower harvest

By BFN News | 07:39 AM | Friday 13 April, 2018


DekelOil, operator and owner of the Ayenouan palm oil project in Cote d'Ivoire, said it produced 13,605 tonnes of crude palm oil in the first quarter of the year, down 17.4% from 16,398 tonnes the same period a year ago. Sales of crude palm oil (CPO) in the first quarter rose to a record 13,758 tonnes, up from 11,871 tonnes of CPO, but the uptick in sales was achieved on lower CPO sales prices. CPO sales prices year-on-year fell 25.5% to €548 from €736, weighed by weaker international benchmark pricing and the strong appreciation of the euro against the US dollar. 'The Q1 performance was set against a backdrop of relatively weaker FFB volumes and lower international prices compared to last year,' the firm said. Palm Kernel Oil (PKO) and Kernel Cake production remained broadly in line with the same period a year ago as lower mill utilisation enabled a higher percentage of kernels to be crushed and processed. The firm added Louis Dreyfus Holding, a merchant and processor of agricultural goods, as a new customer in March 2018, further diversifying its local customer base. 'We view diversification of our sales customer base as critical to maximising the sales prices for our product, particular given the lower CPO supply evident in the local market and this will hold us in good stead to extract premium prices throughout the remainder of the high season and forthcoming low season,' the firm said. 'We remain focused on optimising the variables we can control, such as securing sales for our product at premium prices, maintaining our excellent relationships with the thousands of local smallholders who supply us with fruit, and growing our customer base,' said DekelOil Executive Director Lincoln Moore. Story provided by StockMarketWire.com

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