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

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 >

13:33 ASTARTA Completed its Sowing Campaign 2021
16:47 CNH Industrial announces subsidiary notes offering
14:15 ASTARTA Started Raw Sugar Processing
14:01 For the MY 2021/22 forecasts Bangladeshs rice production to increase, assuming friendly weather and increased yield
12:51 Total Latvian wheat, rye, mixed grains, triticale, barley, corn, and oat production in MY 2021/22 is forecast at 3.2 MMT
13:22 Global cereal markets tighten as demand remains strong in 2020/21
12:25 International food prices continue rising in April
15:38 New Zealand. Total milk production is forecast at 22.2 MMT
16:47 CNH Industrial. Consolidated revenues of $7.5 billion (up 37% compared to Q1 2020)
13:21 Australia. Wheat production is forecast at 27 MMT in MY 2021/22
14:21 ASTARTA Finished Sugar Beet Planting
11:49 Manitou Group: Q121 revenues of 471m, +12% vs. Q120
11:39 BASF increased sales by 2.6 billion compared with the first quarter of 2020 to 19.4 billion
17:00 Spain: Spanish Cheese Exports May Rebound in 2021
16:47 Argentina. Wheat production is estimated at 20.5 million tons in 2021/2022
16:35 Small family farmers produce a third of the worlds food
10:09 Industrial production in Ukraine 2.1% up in March 2021 - statistics
07:20 Finance Ministry proposes to change criteria for land valuation in settlements by 2023
11:28 Giving a voice to soil organisms our silent allies in the fight against hunger
09:53 NBU sends UAH 24.4 bln of profit to state budget
11:50 Vietnam. Soybean meal demand for feed use is forecast to increase in MY2021/22 as the swine herd repopulates
14:11 NBU raises key policy rate to 7.5%
17:10 Brazil Meat Exports Continue to Grow
16:25 Coffee is considered a priority crop by the Angolan Government
11:20 Brazil Soybean Exports Record Large in March
10:18 Burma Rice Exports Disrupted Amid Coup
21:05 Positive cereal crop prospects in 2021
20:35 Global food prices rise for 10th month in a row
10:16 A spicy agricultural heritage: theres more to wasabi than meets the eye
16:00 Turkey. Cattle numbers to increase 1 percent in 2021 to 18.3 million head - USDA
13:25 Japan To Begin Enforcement of Organic Regulations for Turkey Products
13:55 Korea. Overall demand for beef and pork remains strong
15:55 Cargill purchases Precision Ag, expanding its Canadian crop inputs business
21:28 Ukraine's GDP down by 4% in 2020 statistics
21:15 Green Climate Fund approves $80 million in FAO-led projects in Congo and Jordan
20:31 Ukrainian banks see profit fall by 60% in Jan-Feb - NBU
09:49 Business and govt agree to stabilize prices for socially important goods - EBA
16:35 Mexicos chicken meat production, consumption, and imports are projected for 2021
21:07 India Corn Exports Competitive Regionally
23:15 Early estimate points to record 2021 wheat output
22:43 FAO Food Price Index rises for ninth consecutive month in February
12:33 BASF achieved its 2020 Palm Commitment
11:43 BASF Group: Strong performance in Q4 2020 due to higher volumes and prices
11:05 Kernel asks AMCU for permission to buy CascadeAgro, 12 more farms of Khomutynnik
18:36 Ukraine: EIB provides 320 million EURO for COVID-19 vaccines and improvements in operational resilience at Boryspil International Airport
09:47 Soybean Buyers Turn Attention to Brazils 2021 Harvest
11:15 Global orange production for 2020/21 is forecast to rise 3.6 million MT from the previous year to 49.4 million
15:20 USDA attache increased its estimate for South Africas 2020/21 MY total corn crop by 14% to 16 million tons
17:10 Economy Ministry announces market agreement to limit corn export from Ukraine in 2020/2021 MY to 24 mln tonnes
13:33 China Lowers Applied MFN Tariff Rates and Revises Out of Quota TRQ Rates

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 -2021 © Agrarika, ltd.
tel.: +380 44 5934543; +380 44 5934540
e-mail: client@agroperspectiva.com