Malaysia 2020/21 CPO output to be lower-than-forecast
October 12, 2020 - USDA adjusted its Marketing Year (MY) 2020/21 crude palm oil (CPO) production forecast in Malaysia to 19.7 million MT, down 1 million metric tons (MT).
Acute COVID-19 related labor issues are expected to negatively impact the Malaysian palm oil industry through at least the first quarter of the marketing year. USDA is maintaining its MY 2019/20 CPO export estimate at 16.8 million MT. As expected, Indian import restrictions on Malaysian palm oil through the first eight months of the marketing year were only temporary and demand from India in the final four months of MY 2019/20 has increased significantly.
MY 2020/21 export estimate has been reduced 500,000 MT to 7 million MT. This decrease is based on expectations of a slower than previously forecast recovery in global palm oil demand following the COVID-19 pandemic.