MARKET DEVELOPMENT
MPOB Expects CPO Production to Hit 19.5 Million Tonnes in 2014
MPOB Expects CPO Production to Hit 19.5 Million Tonnes in 2014
23/01/2014 (The Star) - The local palm oil industry performance is expected to improve generally this year against 2013, riding on expected higher production and stronger demand.
Malaysian Palm Oil Board director general Datuk Choo Yuen May said crude palm oil (CPO) production is expected to increase to 19.5 million tonnes due to recovery in fresh fruit bunch yield performance, coupled with increase in new mature area coming into production and assumption of normal weather.
"Mature area is expected to increase to 4.71 million ha while immature area to 0.74 million ha," she presented at the Palm Oil Economic Review & Outlook Seminar 2014.
CPO price is expected to be firm this year, due to an increasing palm oil demand by major importing countries due to continued CPO price discount vis a vis soybean oil and rapeseed oil, although the discount may narrow slightly, she added.
Increased palm oil demand for biodiesel was estimated to support CPO prices also.
In terms of export, volume is projected at 18.5 million tonnes this year compared to 18.12 million tonnes last year.
"This is due to a more stable CPO price projection following the CPO export tax structure and higher demand from existing markets like China and India," she said.
On inventory, Choo said the ending palm oil stock level is expected to range between 1.6 million tonnes to 1.8 million tonnes end-2014.
She noted that the 2013 industry performance improved in volume terms but decreased in value terms compared to 2012, mainly because of the lower export prices of all palm oil products.
Malaysian Palm Oil Board director general Datuk Choo Yuen May said crude palm oil (CPO) production is expected to increase to 19.5 million tonnes due to recovery in fresh fruit bunch yield performance, coupled with increase in new mature area coming into production and assumption of normal weather.
"Mature area is expected to increase to 4.71 million ha while immature area to 0.74 million ha," she presented at the Palm Oil Economic Review & Outlook Seminar 2014.
CPO price is expected to be firm this year, due to an increasing palm oil demand by major importing countries due to continued CPO price discount vis a vis soybean oil and rapeseed oil, although the discount may narrow slightly, she added.
Increased palm oil demand for biodiesel was estimated to support CPO prices also.
In terms of export, volume is projected at 18.5 million tonnes this year compared to 18.12 million tonnes last year.
"This is due to a more stable CPO price projection following the CPO export tax structure and higher demand from existing markets like China and India," she said.
On inventory, Choo said the ending palm oil stock level is expected to range between 1.6 million tonnes to 1.8 million tonnes end-2014.
She noted that the 2013 industry performance improved in volume terms but decreased in value terms compared to 2012, mainly because of the lower export prices of all palm oil products.