MALAYSIA CPO PRICE SURGES 12% HIGH

MALAYSIA CRUDE PALM OIL (CPO) price has surged a  12.03% high since March 15, 2021 as said the Malaysian Palm Oil Board (MPOB) and reported in many media recently in Kuala Lumpur, Malaysia. In a statement the Director-general of MPOB known as Dr Ahmad Parveez Ghulam Kadir said the CPO’s bullish performance was attributed to the increase in the price of soybean oil, as well as rising palm oil exports and palm oil stock that remains manageable. He said that CPO recorded its best performance in the history of Malaysian palm oil on May 7, 2021 when it surged to RM4,758.50 per tonne. The report stated that the price recorded on May 7 surpassed nine previous peaks - RM4,247.50 per tonne (March 15, 2021), RM4,270 per tonne (April 9, 2021), RM4,306.50 per tonne (April 21, 2021), RM4,376.50 (April 22, 2021), RM4,428.50 per tonne (April 23, 2021), RM4,502 per tonne (May 3, 2021), RM4,525.50 per tonne (May 4, 2021), RM4,548.50 per tonne (May 5, 2021), and RM4,652 per tonne (May 6, 2021). Ahmad Parveez added that exports of Malaysian palm oil have increased by 12.6% to 1.34 million tonnes in April 2021, from 1.19 million tonnes in March 2021, due to rising demand from the main importing countries.  Meanwhile, palm oil stock decreased 24.4% to 1.55 million tonnes in April 2021, from 2.04 million tonnes in April 2020.  “This is because CPO production for January to April 2021 was 6% lower at 5.18 million tonnes, compared to 5.51 million tonnes in January to April 2020," he said. In this blog "Anim Agricuture Technology" we share the current situation on CPO bullish market as reported by many media.

In other report at Kuala Lumpur in which Palm oil will continue to be the powerhouse of the oils and fats market, despite continued allegations around tropical deforestation and misleading anti-palm oil campaigns. Malaysian Palm Oil Board (MPOB) said palm oil was the largest produced vegetable oil in 2020, accounting for 31 per cent of the world's oils and fats products at 235.4 million tonnes, compared to 25 per cent of soybean oil and 11 per cent of rapeseed oil in the same year.  The government agency, which is responsible for the promotion and development of the local palm oil industry, said palm oil covered 23.4 million hectares of cultivation land in the world or five times smaller than soybean cultivation area.  MPOB said palm oil produces on average 3.24 tonnes per ha annually, equivalent to seven times more than soybean oil and four times more than rapeseed and sunflower oils. From frying oils to shortenings in baking, palm oil is used in various products as it is the only vegetable oil that naturally semi-solid at room temperature with a balanced content of saturated and unsaturated fatty acids (about 1:1). Palm kernel oil, which has a sharp melting profile, can be physically fractionated into palm kernel stearin which is widely used as confectionery fats.  MPOB said numerous research and efforts with investments of millions of capitals to imitate palm oil were carried out due to its versatility and functionality. However, it said none of the existing alternatives to palm oil was currently economically or environmentally viable at scale. Meanwhile, the latest figures showed that about 55.6 per cent of Malaysia's 33 million ha of land areas are under forest cover, exceeding the country's initial pledge of 50 per cent forest cover at the Rio Earth Summit 1992. MPOB said efforts to support the forest coverage included the development of an ecosystem monitoring system, replanting of trees, rehabilitation, ecosystem-based projects, nature-based solutions and ecosystem services. It also focuses on the sustainable management of natural areas and resources, improvement of yield and productivity of commodity without expansion of land.  MPOB said the Mandatory certification of Malaysian Sustainable Palm Oil (MSPO) on January 1 last year ensured responsible and sustainable production, as well as transparency and traceability along the palm oil supply chain.  The MSPO certification also covered the protection of biodiversity and the environment. As of December 31 last year, 88.25 per cent of the total oil palm planted areas in the country had been certified. The government has also established "Malaysian Palm Oil Green Conservation Foundation" to support conservation efforts to enhance the image of palm oil as a sustainable product. In Sabah, the One Million Trees Planting Project, mainly funded by the Malaysian palm oil industry players was launched to contribute to the enhancement of carbon stocks and simultaneously create new carbon sinks within the forest or oil palm landscape. MPOB said Malaysian palm oil represented more than 500,000 smallholders and their families, and more than 416,270 workers in the whole sector of which 76.48 per cent were foreign workers. Thanks.

By,

M Anim,

Putrajaya,

Malaysia.

May 2021.