Export revenue from palm oil and palm oil products this year is expected to increase by 2.4% to RM74 billion versus the RM72.30 billion recorded in 2020, said the Malaysian Palm Oil Board (MPOB).
Director-general Dr Ahmad Parveez Ghulam Kadir said crude palm oil (CPO) production is likely to go up by 2.9% to 19.70 million tonnes from 19.14 million tonnes last year, while stock is expected to jump 58.7% to two million tonnes against 1.26 million tonnes.
“Palm oil exports will improve 0.7%to 17.50 million tonnes, from 17.37 million tonnes. Despite experiencing various hurdles domestically and globally, the Malaysian palm oil industry has successfully adapted to the new norms.
“The year 2021 is expected to bring a brighter prospect for the Malaysian oil palm industry with all the key indicators of the industry projected to show better performance,” he said during a virtual Palm Oil Economic Review & Outlook (R&O) Seminar organised by MPOB today.
He said together with the Ministry of Plantation Industries and Commodities and other related agencies, the MPOB will continue to work closely with industry players in facing the ongoing challenges for the sustenance of the Malaysian oil palm industry.
In regard to the CPO price, he predicted that the outlook for 2021 was going to be firmer, averaged at RM3,000 per tonne.
Still on price outlook, Singapore-based Palm Oil Analytics owner and co-founder, Sathia Varqa said CPO futures trading would be dominated by lower production and low stocks in the country.
“Price supported at RM3,500-RM3,800 per tonne up until middle of February. Prices will ease to RM3,200-RM3,400 per tonne from March 2021,” he said.
He also predicted the sector’s production and exports to increase but said this may be affected should the government impose another movement control order due to the high number of Covid-19 cases in several states.
He foresees positive demand prospects for Malaysian palm oil in the first quarter, especially from India and China — two key destination markets which are currently understocked.