Global CPO Production Set To Soar 11 Per Cent In 2017

KUALA LUMPUR, March 7 (Bernama) -- The global crude palm oil (CPO) production is expected to increase 11 per cent to 65 million tonnes in 2017 from 58.3 million tonnes last year as near-perfect weather in major growing areas would help raise crop yield, an industry expert said. IJM Plantations Bhd Senior Independent Director M.R. Chandran said Indonesia might produce 34.8 million tonnes of the commodity this year from 31.8 million tonnes last year, while Malaysia would likely produce 20 million tonnes from 17.3 million tonnes last year. "There have been ample rains to boost productivity across Malaysia and Indonesia," he said at the Palm and Lauric Oil Conference and Exhibition, Price Outlook 2017/2018 (POC 2017), here Tuesday. Earlier, during a panel session entitled 'Roundtable on Palm Oil 2017: Challenges & Opportunities', Chandran said the CPO was expected to trade between RM2,500 and RM3,000 per tonne this year. He said the CPO prices would also track the ringgit's movement against the US dollar. "The year 2017 is going to be a good year for the plantation industry," he said. Chandran also said the US biodiesel mandate has the potential to be a game changer on the bullish side for soybean oil futures. This would allow palm prices to recover from their recent sell-off, he said. Plantation traders are keeping their eyes open on US President Donald Trump's renewable fuel regulations. A panellist at the roundtable discussion said the downstream sector in the oil palm industry in Malaysia and Indonesia was facing an overcapacity issue. Hence, Sime Darby Plantation Sdn Bhd Senior Vice-President Haris Arshad called for Malaysian and Indonesian refineries to consolidate and set up mills in the importing countries. -- BERNAMA