Asian Palm Oil Producers Forecast Lower Output in 2020

Total palm oil output in top producers Indonesia and Malaysia is expected to fall in 2020 hampered by a labour shortage, and last year’s dry weather and lower fertiliser application, the Council of Palm Oil Producing Countries (CPOPC) said.

The prospect of a La Nina weather patter bringing wetter-than-normal weather to Indonesia and Malaysia could also adversely affect crop production and harvesting, it said. “The potential of La Nina in the second half of the year will dampen any prospects of increased production,” CPOPC, a palm oil board led by Indonesia and Malaysia, said in a report released on Wednesday.

CPOPC forecast Indonesia’s crude palm oil production this year would be 1-2 million tonnes below last year’s 44 million tonnes. Output in neighbouring Malaysia is expected to drop 4.3% to 19 million tonnes…

View entirety: Reuters