Global palm oil production expected to increase by nearly 6% in 2021

According to foreign media sources, an official of the Malaysian Palm Oil Council said on Tuesday that global palm oil production in 2021 is expected to increase by nearly 6% over this year.

The chief representative of the Shanghai representative office of the committee said at a meeting that the increase in production was mainly due to the increase in yields. The two major producing countries, Malaysia and Indonesia, are expected to have little growth in oil palm plantation.

It said that in 2021, global palm oil production is expected to reach 78.4 million tons, an increase of 4.21 million tons from this year (production estimated at 74.19 million tons).

It is estimated that the oil palm plantation area in Malaysia is expected to increase by 0.5% in 2021, and that in Indonesia is expected to increase by 1%.

The representative said that there are large areas of aging oil palm trees in the two countries that need to be replanted to maintain output, and that replanting will affect yield growth in the short to medium term.

The sharp decline in Malaysian production and stronger-than-expected exports have supported palm oil prices.

Industry leading analyst Dorab Mistry said earlier this month that the total output of Malaysia and Indonesia in 2021 will be 70 million tons.

China's palm oil consumption in 2021 is expected to drop slightly from 6.42 million tons this year to 6.35 million tons.

The increase in soybean (5599, 142.00, 2.60%) crushing has spurred China's soybean oil production and restrained its import growth, but imports are still expected to increase slightly due to the decline in rapeseed, sunflower seed and other oilseed production.

China's palm oil imports in 2021 are expected to be 6.4 million tons, higher than this year's 6.33 million tons.