MARKET DEVELOPMENT
CPO Production To Increase To 19.5 Million Tonnes This Year
CPO Production To Increase To 19.5 Million Tonnes This Year
24/01/2014 (Bernama) - Malaysia's production of crude palm oil (CPO) is expected to increase to 19.5 million tonnes this year, from 19.2 million tonnes recorded in 2013, given the recovery in fresh fruit bunches.
Malaysian Palm Oil Board (MPOB) Director-General Datuk Dr Choo Yuen May said increase in new matured areas against a backdrop of normal weather was also expected to contribute to the better output.
Despite the higher output, she said prices would remain firm due to increased demand and the discount vis-a-vis soybean oil and rapeseed oil, she told participants of the Palm Oil Economic Review and Outlook Seminar 2014 here Thursday.
Choo added that increased palm oil demand for biodiesel was also expected to support CPO prices.
Malaysia is the second largest producer and the world's biggest exporter of palm oil and palm-based products after Indonesia.
The country is expected to export 18.5 million tonnes of palm oil this year against 18.1 million tonnes recorded last year given the high demand from existing markets like China and India, said Choo.
Commenting on inventories, she said palm oil stocks were anticipated to range between 1.6 million tonnes and 1.8 million tonnes by year-end.
As for the industry's performance last year, she said there was an improvement in volume but value declined because of lower export prices for all palm oil products.
Malaysian Palm Oil Board (MPOB) Director-General Datuk Dr Choo Yuen May said increase in new matured areas against a backdrop of normal weather was also expected to contribute to the better output.
Despite the higher output, she said prices would remain firm due to increased demand and the discount vis-a-vis soybean oil and rapeseed oil, she told participants of the Palm Oil Economic Review and Outlook Seminar 2014 here Thursday.
Choo added that increased palm oil demand for biodiesel was also expected to support CPO prices.
Malaysia is the second largest producer and the world's biggest exporter of palm oil and palm-based products after Indonesia.
The country is expected to export 18.5 million tonnes of palm oil this year against 18.1 million tonnes recorded last year given the high demand from existing markets like China and India, said Choo.
Commenting on inventories, she said palm oil stocks were anticipated to range between 1.6 million tonnes and 1.8 million tonnes by year-end.
As for the industry's performance last year, she said there was an improvement in volume but value declined because of lower export prices for all palm oil products.