![\"palm](\"https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128-1024x539.jpg\")
<\/figure><\/div>\n\n\n\nThe PENJANA initiative announced a 100 percent exemption from\u00a0export duty\u00a0on crude palm oil, crude palm kernel oil, and processed palm kernel\u00a0oil\u00a0from July 1, 2020, to Dec 31, 2020.<\/p>\n\n\n\n
Upon this good news, countries such as India, China, and the European Union (EU) which has become Malaysia’s traditional market\u00a0are expected to return to stock up on palm oil.<\/p>\n\n\n\n
Malaysian Palm Oil Board director-general Dr. Ahmad Parveez Ghulam Kadir said since mid-May, Malaysia has begun to witness a resurgence in\u00a0CPO prices.<\/p>\n\n\n\n
\u201cWe are beginning to see the easing of COVID-19 induced lockdowns in most countries and the resumption of economic activities. There is also a need to replenish stocks that have been depleted due to import disruptions over the past few months,\u201d he told Bernama.<\/p>\n\n\n\n
Quoting Oil World, he said the performance of world oils and fats market is expected to be mixed, with total production and exports are forecast to be lower than that of the previous year.<\/p>\n\n\n\n
However, total disappearance is expected to increase which leads to lower stocks and better prices.<\/p>\n\n\n\n
\u201cThe bear may soon be turning into a bull\u201d.<\/p>\n\n\n\n
Commenting on PENJANA tax exemption, Ahmad Parveez said the move will encourage industry players to sell more palm oil and help them earn more income while solving their problems, including the additional costs incurred during these difficult times.<\/p>\n\n\n\n
\u201cWe could promote more exports, especially to the top vegetable oil consumers, including India, China, and Pakistan. The announcement also bodes well with India\u2019s decision to import 1.14 million tonnes of vegetable oil in June from the April-May monthly average of 865,000 million tonnes\u201d.<\/p>\n\n\n\n
To recap, Malaysian palm oil shipments to its top buyer, India plunged to a fresh record low in April on lack of demand.<\/p>\n\n\n\n
As for March, it only exported 10,806 tonnes to India, a decline of\u00a097 percent from a year earlier, and the lowest monthly total in-board data going back to 2000.<\/p>\n\n\n\n
But the situation is about to change, hopefully.<\/p>\n\n\n\n
The Malaysian Palm Oil Council, via its second webinar on \u201cPalm Oil in the Post-Pandemic Market”\u00a0said palm oil export is expected to increase\u00a02.5 percent to 4.56 million tonnes in the third quarter\u00a0versus the previous quarter\u00a0on improved demand from the traditional markets — India, China, and the EU.<\/p>\n\n\n\n
Its chief executive officer Datuk Dr.\u00a0Kalyana Sundram said India, which relies\u00a0heavily\u00a0on edible oil, will\u00a0resume its purchase of about 2.15 million tonnes\u00a0of palm oil\u00a0in the third quarter, facilitated by the government\u2019s recent CPO duty exemption and competitive pricing versus other palm oil producers.<\/p>\n\n\n\n
India bought about nine\u00a0million tonnes of palm oil annually, which accounts for nearly two-thirds of its total edible oil imports with\u00a04.4 million tonnes of its purchase came from Malaysia last year.<\/p>\n\n\n\n
\u201cChina\u2019s demand for palm oil will also increase with an estimated import volume of 1.8 million tonnes while the demand from the EU will likely be higher,\u00a0owing\u00a0to the decline in rapeseed production due to\u00a0detrimental weather and lower seed crushing activities,\u201d Kalyana said.<\/p>\n\n\n\n
He believed the industry is marching ahead positively for the rest of the year, despite the pandemic.<\/p>\n\n\n\n
And if the stocks continue to deplete, there is a good chance for the CPO price to trade higher, benefitting the smallholders and the big companies.<\/p>\n\n\n\n
Cargo surveyor Intertek Testing Services recently reported that Malaysia’s palm oil exports in the June 1-10 period increased 61.71 percent to 545,360 tonnes from 337,255 tonnes in the same period in May 2020.<\/p>\n\n\n\n
Similarly, cargo surveyor Amspec Malaysia stated that exports in the June 1-10 period rose 59.53 percent to 550,341 tonnes from 344,983 tonnes in the same period in May 2020.<\/p>\n\n\n\n
Palm Oil Analytics owner and co-founder Dr.\u00a0Sathia Varqa\u00a0said Malaysia\u2019s CPO futures benchmark price may trade higher in June and July if it maintains its higher export figures, including\u00a0to India.<\/p>\n\n\n\n
But he cautioned as production reach its peak from August until October, the commodity price may fall slightly to RM2,200 per tonne.<\/p>\n\n\n\n
On production, Malaysia and its counterpart, Indonesia, would see lower production while facing the uncertain and fragile COVID-19 challenges, he said.<\/p>\n\n\n\n
Malaysia\u2019s production is expected to go down to 19 million tonnes in 2020 from 19.85 million in 2019 while Indonesia\u2019s production is likely to remain unchanged, at 45 million tonnes.<\/p>\n\n\n\n
—\u00a0BERNAMA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" KUALA LUMPUR — After a dramatic slowdown in the first quarter due to the coronavirus…<\/p>\n","protected":false},"author":1,"featured_media":4312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,17,20,524],"tags":[],"class_list":["post-4311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economy","category-local","category-nation"],"featured_image_urls":{"full":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128.jpg",1064,560,false],"thumbnail":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128-150x150.jpg",150,150,true],"medium":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128-300x158.jpg",300,158,true],"medium_large":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128-768x404.jpg",640,337,true],"large":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128-1024x539.jpg",640,337,true],"1536x1536":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128.jpg",1064,560,false],"2048x2048":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128.jpg",1064,560,false],"newsium-slider-full":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128.jpg",1064,560,false],"newsium-featured":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128.jpg",1024,539,false],"newsium-medium":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/06\/bd87761ffcdcbc16cb367f2827a9b2485e6e2e4c90128.jpg",720,379,false]},"author_info":{"info":["Editor"]},"category_info":"Business<\/a> Economy<\/a> Local<\/a> Nation<\/a>","tag_info":"Nation","comment_count":"0","_links":{"self":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/4311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4311"}],"version-history":[{"count":2,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/4311\/revisions"}],"predecessor-version":[{"id":4314,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/4311\/revisions\/4314"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/media\/4312"}],"wp:attachment":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}