USDA Reports On palm oil (Malaysia) April 6,2021
Date: April 06, 2021
Report Number: MY2021-0003
Report Name: Oilseeds and Products Annual Country: Malaysia
Malaysian crude palm oil (CPO) production in marketing year (MAY) 2020/21 at 19.5 million metric tons (MT). This lower than expected increase over the previous year, due to a serious shortage of manual labor resulting from COVID-19.
Palm Oil Production:-
Malaysian crude palm oil (CPO) production in marketing year (MY) 2020/21 at 19.5 million metric tons (MT), an increase of 245,000 MT compared to the previous year, but 100,000 MT is lower than May 2020/21. Consumption Post estimates MY 2020/21 CPO domestic consumption at 3.475 million MT, down from May 2019/20 and the May 2020/21 because of less number of transportation due to COVID19.
CPO exports in May 2020/21 at 17.45 million MT, an increase of over 200,000 MT compared to the previous year. This significant increase is the result of major export markets, specifically India and China but now Demands is decreasing in India because of COVID19.
In early 2018, the European Parliament (EP) voted to ban the use of CPO in biofuels by 2020. On January 15, 2021, Malaysia followed Indonesia and initiated a WTO dispute complaint against the EU and EU member states France and Lithuania following the bloc’s action to phase out palm biofuel imports.
The Crude palm oil price in the future will increase few points because of low production, Labour issues, Transportation. Demerits are looked up Low demand by India and European nations because of Lockdown and WTO Dispute. But Do not Ignore Chinese Demands for Re-exporting CPO.
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