Palm oil industry may see full recovery in 4Q20, if pandemic manageable, says Council of Palm Oil Producing CountriesA worker shows palm oil fruits at a factory in Sepang November 20, 2014. The council also believed that there is a possibility of a rebound in the market given the ultra-loose monetary policies of many central bankers and the government’s stimulus package. — AFP pic
The Malaysia Palm Oil Council predicted the crude palm oil prices to hit RM2,594 per tonne in the second half of 2020 and averaging at RM2,337 for the year. The potential of La Nina in the second half of the year would also dampen any prospects of increased production. The government has recently imposed a hiring freeze for new foreign workers to which the sector relies on. The shortage of workers has been worsened by the imposition of the movement control order to stop the spread of Covid-19