FGV warns its palm oil output will drop due to COVID-19 control order
May 14th, 2020
Malaysian palm oil producer FGV Holdings says its output will drop this year due to the effect of the movement control order put in place since 18 March to combat COVID-19.FGV is projecting a significant shortfall in production in 2020. FGV said it had a total plantation landbank of 439,230ha in Malaysia and Indonesia, including 351,000ha under the land lease agreement with Felda. FGV expected CPO prices to trade at between RM2400 (US$558.46) and RM2,200 (US$511.93) a tonne this year, with tight supply and higher biodiesel mandates in Malaysia and Indonesia supporting prices.e price of CPO futures contracts on Bursa Derivatives had dropped 30% so far this year.