Positive development in Covid-19 situation to boost CPO production, exports in 2022 — MPOB

Positive development in Covid-19 situation to boost CPO production, exports in 2022 — MPOB
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KUALA LUMPUR (Oct 18): Crude palm oil (CPO) production and exports are expected to be sustainable in 2022, supported by positive developments in the Covid-19 situation, better prospects for global oils and fats, and favourable trade policies in importing countries, said the Malaysian Palm Oil Board (MPOB).

Director-general Dr Ahmad Parveez Ghulam Kadir said it is the continuation from the improvement seen towards the end of 2021 whereby production and exports are expected to show some improvement year-on-year, hence bringing about more manageable stock levels and causing some correction in CPO prices.

“In view of the situation, CPO prices in 2021 are expected to remain high at an average of RM4,100 per tonne,” he said in his slide presentation during a Malaysian Palm Oil Council (MPOC) Pointers on Price Trends online seminar on Monday.

He projected Malaysian CPO production for this year to be at 18 million tonnes, down by 6% from 19.14 million tonnes, and stocks to increase by 33.9% to 1.7 million tonnes from 1.27 million tonnes in 2020.

Exports of palm oil are expected to decline by 6.2% to 16.3 million tonnes versus 17.37 million tonnes in 2020.

As for revenue, Malaysia is expected to record RM95 billion export revenue from palm oil, up by 29.7% from the RM73.25 billion recorded in 2020.

Ahmad Parveez said that for the period of January to September 2021, the Malaysian palm oil industry witnessed a weaker production performance as compared to the corresponding period in 2020, which limited its capacity for export and tightened stocks.

He said production had declined to the lowest level since 2017.

For the first nine months this year, CPO exports fell 12% to 11.24 million tonnes from the 12.77 million tonnes recorded a year ago.

Underpinned by tight supply availability, CPO prices during that period surged to a record high and boosted export revenue, he added.

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