Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 

Home > News > News

Malaysia. Palm oil (CPO) production forecast - 19.6 million MT

31.12.2020 13:35 "Agro Perspectiva" (Kyiv) Following are selected highlights from a report issued by a U. S. Department of Agriculture attache in The Kuala Lumpur, Post is adjusting its Marketing Year (MY) 2020/21 crude palm oil (CPO) production forecast down 100,000 metric tons (MT) to 19.6 million MT as labor issues stemming from the COVID-19 pandemic continue to plague the industry. Posts MY 2020/21 CPO consumption estimate has been adjusted down 150,000 MT due to increasing speculation that a nationwide shift from a 10 percent to a 20 percent biodiesel blend mandate (currently scheduled for mid-2021) wont be realized until 2022. Posts MY 2020/21 CPO export estimate has been adjusted up 400,000 MT based on media reports India recently reduced its customs duty on CPO imports. Also supporting increased Malaysian CPO exports in MY 2020/21 are reports from Indonesia indicating the country recently increased its CPO export levy.


Posts marketing year (MY) 2020/21 crude palm oil (CPO) production estimate has been adjusted down 100,000 metric tons (MT) to 19.6 million MT. This reduction (compared to the September 30, 2020 quarterly report) is based on industry feedback that disruption and labor shortages stemming from the COVID-19 pandemic continue to negatively impact production.

While more favorable weather the previous year is expected to positively impact Malaysian palm plantation yields in MY 2020/21, the acute shortage of manual labor is a particularly challenging issue.

With up to 84 percent of the industrys labor force normally comprised of foreign migrant workers (mostly from India, Bangladesh, and Indonesia), pandemic-induced travel restrictions have exacerbated local plantations ability to collect palm fruit. Adding uncertainty to the situation, a Government of Malaysia (GoM) moratorium on new migrant labor (initiated in June 2020) is due to end in December 2020, but there are still no clear guidelines on how foreign workers will be able to re-enter the country once the moratorium is lifted. Malaysia Palm Oil Board (MPOB) data through the first two months of the marketing year indicates production is down 3.5 percent compared to the same time the previous year.


Posts MY 2020/21 CPO consumption estimate has been adjusted down 150,000 MT (compared to the September 30, 2020 quarterly report) to 3.62 million MT. With CPOs price premium over fossil diesel markedly higher in 2020 compared to 2019, the cost of maintaining the B10 blend mandate has also risen. Multiple analysts now expect a national B20 rollout (currently scheduled for mid-2021) wont be realized until potentially 2022, supported by a return to price relationships more favorable for palm oilbased biodiesel.


Posts MY 2019/20 CPO export estimate has been adjusted up 410,000 MT (compared to the September 30, 2020 quarterly report) to 17.2 million MT based on full year MPOB data. Posts MY 2020/21 CPO export estimate has been adjusted up 400,000 MT (compared to the September 30, 2020 quarterly report) to 17.4 million MT based on media reports that India (Malaysias largest CPO customer) has reduced its customs duty on CPO imports from 37.5 percent to 27.5 percent as of November 27, 2020 (for details, please click here). Also supporting increased Malaysian CPO exports in MY 2020/21 are reports from Indonesia (Malaysias largest competitor in the global CPO market) indicating the country increased its CPO export levy as of December 10, 2020.

Agro Perspectiva

< Serbias total area wheat crop is estimated at 600,000 ha All news for
Sustainabilitys influence on chocolate purchase decisions continues to grow, Cargill study finds >

13:55 Ukraine will sue Poland, Hungary and Slovakia over agricultural bans
21:02 Following the expiry of the restrictive measures on Ukrainian exports of grain and other foodstuff to the EU, Ukraine agrees to introduce measures to avoid a renewed surge in EU imports
17:54 Biodel AG Secures Series A Investment from Pangaea Ventures to Advance Novel Regenerative Agriculture Technologies
07:25 Rice Export Prices Highest in 15 Years as India Restricts Trade
17:54 Export Bans, Black Sea Tensions, Affecting Food Markets - WTO Agriculture and Commodities Division
18:36 Global cereal production forecast to match past record - FAO
13:22 EBRD provides EUR60 million guarantee to support lending by Ukraines PrivatBank
13:18 Supporting small business in the west of Ukraine via Bank Lviv
18:35 Russia Withdraws from Black Sea Grain Initiative
19:32 Falling international maize and sugar prices partly offset notable jumps in wheat and vegetable oil quotations
19:25 Cargill and partners announce first Gold Standard-approved methane emissions reduction methodology for beef producers
19:21 FAO welcomes European Union contribution of 25 million to advance wildlife conservation and food security
18:55 BASFs earnings in tough market environment significantly below strong prior-year quarter
00:45 Brazil continues to make export gains and set new records for beef, pork, and chicken meat
22:25 122 million more people pushed into hunger since 2019 due to multiple crises, reveals UN report
08:17 U.S. dairy exports to Southeast Asia have been weak to start 2023
07:00 Russia Exports Record Wheat Volumes; Ukraine Exports Plummet
09:00 FAO Food Price Index continued declining in June
20:10 Global agricultural and food production are projected to continue to increase over the next ten years
19:54 EBRD supports Ukrainian city of Dnipro with EUR25 million loan
09:03 Nibulon invests EUR 27 mln in construction of granary, flour mill in Izmail
08:57 World coffee production for 2023/24 is forecast 4.3 million bags higher than the previous year to 174.3 million
08:55 Mexicos Production Recovering from Coffee Leaf Rust
04:05 EBRD and Ukraine government to mobilise 600 million for Ukraine energy security
20:26 EBRD and Ukraine government to mobilise EUR600 million for Ukraine energy security
15:55 Argentina ramps up soybean imports from Paraguay and Brazil
04:35 World Oceans Day must be Humans Day: FAO Fisheries chief
11:24 EU extends trade benefits for Ukraine
11:25 2023/24 Grain Production Exceeds Consumption
11:45 Rebound seen for global cereal output, with worldwide stocks set to hit record levels
11:35 Significant drops in international quotations for wheat, maize, vegetable oils and cheese, while prices of rice, sugar and meat rise
11:56 Conflict Drives Acute Hunger in the Democratic Republic of Congo - UN agencies warn
12:29 Three New Foods and Their Applicable Food Safety Standards
11:55 Haiti: Nearly half of the population is facing acute hunger
11:34 Increasing risk of hunger set to spread in hotspot areas as the Sudan crisis spills over into subregion and el Niño looms - warns new UN report
12:51 Black Sea Grain Initiative not fully resumed UN
15:52 Ukrainian FM urges African Union to demand that Russia stop obstructing work of grain corridor
11:49 Grain initiative talks continue considering proposal of UN Secretary General Dpty Minister of Restoration
14:45 The FAO Food Price Index rebounded slightly in April
09:15 Yara . 1Q results impacted by falling prices, but tighter nitrogen market into 2Q
22:10 Ukraine sees no reason to ban Ukrainian grain imports by EU countries - Solsky
21:45 $5 million from FAO-China South-South Cooperation Programme will assist in building more resilient agrifood systems
21:05 China Becomes Worlds Largest Wheat Importer in 2022/23
09:52 EBRD and Spain join forces to support Ukraines food security and municipal sector
13:10 Astarta starts 2023 planting season
00:27 War in Ukraine continues to impact EU farmers
22:17 Ukraine sends 150,000 tonnes of wheat to Asia
12:00 Global onion prices are at record-high levels due to a global shortage of onions
06:17 It will enrich Egypt if a kilo of onions costs HUF 1,000
11:03 Plummeting Argentina Soybean Production Impacts Global Soybean and Products Trade

Also available: 

NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2023 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com